December 2023

National home sales remained mostly stable this period, falling 0.9% month-over-month and 0.9% year-over-year, according to the Canadian Real Estate Association (CREA), as higher borrowing costs continue to impact potential buyers and cause many current homeowners to put their selling plans on hold. Home sales have fallen by about 13% since June, when the Bank of Canada resumed its series of interest rate hikes. Sales are expected to remain cooler through the winter months, with many markets now in the midst of a correction amid higher borrowing costs and historically low affordability. 

New Listings increased 29.1 percent for Waterfront homes and 24.7 percent for Non-Waterfront homes. Sales decreased 24.1 percent for Waterfront homes and 19.6 percent for Non-Waterfront homes. Inventory increased 55.6 percent for Waterfront homes and 45.7 percent for Non-Waterfront homes. 

Median Sales Price increased 16.5 percent to $757,250 for Waterfront homes but decreased 4.1 percent to $618,000 for Non-Waterfront homes. Days on Market increased 42.9 percent for Waterfront homes but decreased 3.8 percent for Non-Waterfront homes. Months Supply of Inventory increased 64.0 percent for Waterfront homes and 59.3 percent for Non-Waterfront homes. 

With home sales down, prices have continued to soften nationwide, falling 1.1% month-over-month as of last report, the largest decline since September 2022, although prices were still up 0.6% year-over-year, according to CREA. Economists are projecting sales prices will continue to soften in parts of Canada until the Bank of Canada begins cutting interest rates, which many expect will occur in 2024, depending on inflation. Meanwhile, the number of new listings declined for the second month in a row, dropping 1.8% from the previous month, for a 4.2 months’ supply heading into December.

September 2023: Canada home sales slid for the second month in a row, falling 4.1% month-over-month, according to the Canadian Real Estate Association (CREA), as higher borrowing costs continue to impact market activity. Economists predicted that sales would soften following the Bank of Canada’s rate hikes this summer, which raised the benchmark interest rate to 5%, a 22-year high, pushing some prospective buyers back to the sidelines, while remaining buyers face significantly higher monthly payments. 

New Listings increased 30.9 percent for Waterfront homes and 17.0 percent for Non-Waterfront homes. Sales increased 16.8 percent for Waterfront homes but decreased 5.5 percent for Non-Waterfront homes. Inventory increased 59.7 percent for Waterfront homes and 26.8 percent for Non-Waterfront homes. 

Median Sales Price decreased 2.7 percent to $860,000 for Waterfront homes and 2.4 percent to $610,000 for Non-Waterfront homes. Days on Market increased 25.6 percent for Waterfront homes and 13.5 percent for Non-Waterfront homes. Months Supply of Inventory increased 91.1 percent for Waterfront homes and 50.0 percent for Non-Waterfront homes. 

As sales slow, new listings continue to rise, climbing 0.8% month-over-month, according to CREA. New listings are up a cumulative 24% since March, after reaching a two-decade low at the beginning of the year. Although buyers may have additional options in their home search, inventory remains low by historical standards, with only 3.4 months’ supply heading into September. Supply and demand imbalances have put upward pressure on sales prices, which have continued to rise nationally, with the MLS Home Price Index (HPI) increasing 0.4% as of last measure.

July 2023: National home sales continue to improve, rising 1.5% month-over-month as of last measure, according to the Canadian Real Estate Association (CREA), with sales up 4.7% compared to the same period last year. Market activity has picked up in recent months as homebuyers took advantage of the Bank of Canada’s temporary pause on interest rate hikes earlier this year, leading home sales to increase ahead of the Bank’s latest 0.25% rate hike in July.

New Listings increased 10.2 percent for Waterfront homes and 1.6 percent for Non-Waterfront homes. Sales decreased 20.5 percent for Waterfront homes but increased 27.3 percent for Non-Waterfront homes. Inventory increased 41.5 percent for Waterfront homes and 19.6 percent for Non-Waterfront homes. 

Median Sales Price increased 15.2 percent to $980,000 for Waterfront homes and 1.7 percent to $660,000 for Non-Waterfront homes. Days on Market increased 34.5 percent for Waterfront homes and 46.2 percent for Non-Waterfront homes. Months Supply of Inventory increased 100.0 percent for Waterfront homes and 54.1 percent for Non-Waterfront homes. 

Sellers appear to be taking note of the recent surge of buyer activity, with new listings climbing 5.9% month-over-month, according to CREA, building on the increases recorded in April and May. A new wave of listings has helped give prospective buyers additional options in their home search, but with only 3.1 months’ supply heading into July, low inventory levels continue to put upward pressure on home prices, with the Aggregate Composite Home Price Index (HPI) rising 2% month-over-month, a significant increase for a single month.

May 2023: The Canada real estate market continues to show signs of a rebound, with home sales up by double digits month-over-month. According to the Canadian Real Estate Association (CREA), national home sales rose 11.3% as of last measure, marking the third consecutive month that home sales grew, and the strongest monthly gain in nearly three years. While buyers have returned to the market, the rise in mortgage interest rates over the last year has kept many current homeowners on the sidelines, with new listings up 1.6% month-over-month. 

New Listings increased 15.0 percent for Waterfront homes but decreased 3.2 percent for Non-Waterfront homes. Sales decreased 2.5 percent for Waterfront homes but increased 2.9 percent for Non-Waterfront homes. Inventory increased 56.6 percent for Waterfront homes and 41.8 percent for Non-Waterfront homes. 

Median Sales Price decreased 2.6 percent to $950,000 for Waterfront homes and 3.7 percent to $681,500 for Non-Waterfront homes. Days on Market increased 93.8 percent for Waterfront homes and 106.7 percent for Non-Waterfront homes. Months Supply of Inventory increased 153.1 percent for Waterfront homes and 121.7 percent for Non-Waterfront homes. 

Buyer demand continues to outpace supply, which remains at a two decade low, causing sales prices to increase for the second straight month. According to CREA, the Aggregate Composite MLS Home Price Index (HPI) rose 1.6% month-over-month as of last measure, with the national average sales price up more than $100,000 since January. Although home prices remain down compared to last year, recent increases could help bring prospective sellers back to the market, many of whom have been delaying the decision to sell until market conditions shift in their favor.