Canadian home sales fell 14.5 per cent between December and January, marking the lowest sales level in three years as the housing market was hit last month by a double whammy of tighter mortgage rules and lending rate hikes.

Data released by the Canadian Real Estate Association Thursday suggested that January activity was down in three-quarters of all local markets and virtually all major urban areas, especially in Ontario91裸聊视频檚 hot spot in the Greater Golden Horseshoe. The decline was less significant on an annual basis, with sales falling 2.4 per cent.

Sales climbed to a record monthly high in December, according to CREA91裸聊视频檚 figures, ahead of the stress test that requires all potential buyers qualifying for a mortgage to show that they can manage interest rate increases.

91裸聊视频淭he decline in January sales provides clear evidence that the strength in activity late last year reflected a pull-forward of transactions, as rational homebuyers hurried to purchase before mortgage rules changed in 2018,91裸聊视频� said Gregory Klump, the association91裸聊视频檚 chief economist.

The federal banking regulator for uninsured mortgages beginning Jan. 1 and require a stress test for borrowers with a more than 20 per cent down payment. They now have to prove that they can service mortgage at a qualifying rate of the greater of the contractual mortgage rate plus two percentage point or the five-year benchmark rate published by the Bank of Canada.

The January market also dampened due to the Bank of Canada91裸聊视频檚 decision to raise interest rates to 1.25 per cent, up from one per cent. It was the bank91裸聊视频檚 third increase since last summer, following hikes in July and September.

The central bank91裸聊视频檚 interest rate increase impacts variable rate mortgage holders, but those who opt for fixed mortgages also saw a rise in the five-year fixed rate amid rising bond yields and a stronger economy.

CREA noted that January home sales are on par with the 10-year monthly average and that a large decline in new listings prevented the market balance from shifting in favour of homebuyers. The average price of a home rose by 2.3 per cent when compared with last year at just over $481,500.

The national sales-to-new listings ratio was 63.6 per cent in January. A ratio reading above 60 per cent generally indicates a sellers91裸聊视频� market.

The number of newly-listed homes plunged 21.6 per cent from December 2017 to January 2018 91裸聊视频� the lowest level since spring 2009. About 85 per cent of all markets had fewer listings. The Greater Toronto Area led the decline, with large percentage drops also in British Columbia91裸聊视频檚 Lower Mainland, Vancouver Island and the Okanagan region, as well as parts of Ontario.

91裸聊视频淭he piling on of yet more mortgage rule changes that took effect starting New Year91裸聊视频檚 Day has created homebuyer uncertainty and confusion,91裸聊视频� said CREA President Andrew Peck in a statement.

91裸聊视频淎t the same time, the changes do nothing to address government concerns about home prices that stem from an ongoing supply shortage in major markets like Vancouver and Toronto. Unless these supply shortages are addressed, concerns will persist.91裸聊视频�

Aleksandra Sagan, The Canadian Press