By Fergal Smith
TORONTO (Reuters) -Greater Toronto Area home sales fell for the first time in five months in August and prices edged lower, Toronto Regional Real Estate Board data showed on Thursday.
Seasonally adjusted sales fell 1.8% on a month-over-month basis to 5,633 units, which was the first decline since March.
TRREB’s home price index also edged lower after seasonal adjustment from July, dipping 0.1% to C$978,100 ($707,896). Prices have declined or were flat every month since November.
The Greater Toronto Area (GTA) includes Toronto, Canada’s most populous city, and four surrounding regional municipalities.
“A household earning the average income in the GTA is still finding it challenging to afford the monthly mortgage payment associated with the purchase of an average priced home. This is even with lower borrowing costs and selling prices over the past year,” TRREB chief information officer Jason Mercer said in a statement.
“Further relief in borrowing costs would see an increased number of buyers move off the sidelines to take advantage of today’s well-supplied market.”
Investors expect the Bank of Canada to resume its easing campaign at a policy decision on September 17. The central bank has left its benchmark interest rate on hold at 2.75% since March.
On a year-to-year basis, the price index fell 5.2%, while sales were up 2.3% and new listings climbed 9.4%.
($1 = 1.3817 Canadian dollars)
(Reporting by Fergal Smith; Editing by Lisa Shumaker)
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