Canadian Real Estate Market Shows Stability Amid Rate Cuts and Buyer Stimulus
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The Canadian real estate market showed stability in November, with the price of a typical home remaining mostly unchanged, signaling a halt to price erosion. This stability followed rate cuts and state-backed buyer stimulus, which helped boost demand. While sentiment has improved, previous surges in buyer activity have often faded quickly, leaving uncertainty about the market’s sustainability.
The price of a typical home slipped slightly by 0.1% in November, reaching $707,100, a 1.2% decrease compared to last year. Although prices haven’t seen significant drops, the market has been firming up in recent months. The annual price change has improved for four consecutive months, indicating the smallest gap since April.
Despite these signs of stability, homes remain significantly lower than their peak in March 2022, with the composite benchmark still down 17%. Activity has increased as buyers returned to the market while sellers held back, creating a balanced sales-to-listing ratio. While market sentiment is improving, the impact of fundamental factors like rising unemployment and population shrinkage may eventually take a toll, although cheaper credit continues to drive demand.
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