Canadian home sales in January hit lowest level since 2009.

In January, home sales hit their lowest level since 2009, according to the Canadian Real Estate Association (CREA). Compared to the same month a year ago, sales dropped 37.1 percent. On a month-over-month basis, sales also declined 3 percent, erasing the small gains made in December.

The decrease was driven by fewer sales in Greater Vancouver, Victoria and Vancouver Island, Calgary, Edmonton, and Montreal, despite gains in Hamilton-Burlington, Ontario, and Quebec City. The drop in home sales last year was attributed to rising mortgage rates, which increased the cost of borrowing for Canadians and slowed the housing market.

CREA reported that the number of newly listed homes rose 3.3 percent from December. Despite this, the new supply for January was the lowest since 2000. The sales-to-new listings ratio eased back to 50.7 percent. The national average home price dropped 18.3 percent year-over-year to $612,204.