UPDATE 1-Canadian home resales fall in June, industry group says

Wed Jul 15, 2015 9:53am EDT
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(Adds details on inventory, prices)

By Andrea Hopkins

TORONTO, July 15 (Reuters) - Sales of existing homes in Canada fell in June from May as a decline in sales in Ottawa and Montreal outweighed increases in the Toronto area, but national prices continued to rise, the Canadian Real Estate Association said on Wednesday.

The industry group for Canadian real estate agents said sales activity was down 0.8 percent last month from May, but noted that sales levels in May and June were at the strongest level in more than five years.

Actual sales for June, not seasonally adjusted, surged 11 percent from June 2014.

"After a tough winter across many parts of the country, homebuyers were very active through the spring and early summer, with record low mortgage rates providing a boost," Robert Kavcic, senior economist at BMO Capital Markets, said in a research note.

"Overall, the market didn't tighten up again in June, but it is quite a bit tighter than it was a year ago."

CREA's resale home price index rose 5.43 percent from June 2014.

Vancouver and Toronto continued to set the pace with year-over-year price increases of 10.26 percent and 8.94 percent, respectively, while gains in the oil-industry capital of Calgary eked out a year-over-year increase of 0.48 percent, CREA said.   Continued...