Canada’s weak employment and income likely to weigh on home sales

Canadian January national home sales seasonally adjusted increased 0.5% m/m, posting a modest gain and recording its highest levels since October 2009. Overall market conditions remain at an equilibrium.

The national average house price increased 3.2% m/m in January, with the yearly figure increasing to a six-year high of 17%. The national average new listings to sales ratio declined to 1.69 in January, with the number of months of inventory sliding to 5.3.

"Weak employment and income prospects and reduced migration inflows will likely keep downward pressure on home sales and prices in Canada's oil-producing provinces'" Scotiabank said in a research note