Canadian Housing Market Enters Early Winter Slumber Mixed Trends and Regional Contrasts
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The Canadian housing market experienced a premature slowdown in October, marked by a decline in both home sales and new listings, according to the Canadian Real Estate Association (CREA). This departure from the seasonal trend, which usually sees a slowdown in colder months, was notable. The drop in home sales by 5.6% and new listings by 2.3% is indicative of potential buyers and sellers adopting a cautious approach, with some postponing their plans until spring. The market's subdued activity was attributed to factors like high interest rates, causing sales to linger around levels last seen over two decades ago on a per capita basis.
Despite the overall market cooling, certain regions displayed divergent trends. Cities like Vancouver, Victoria, Calgary, Ottawa, Toronto, and Montreal experienced notable decreases in housing activity, contributing to a predominantly stagnant pricing environment. However, while the average selling price remained relatively flat at $656,625 (up by 1.8% from a year ago), CREA warned against relying solely on this figure due to its susceptibility to distortion from major markets like Toronto and Vancouver. Instead, they emphasized the House Price Index (HPI), which adjusted for various factors, indicating a 0.8% decline in October but still showing a 1.1% increase from the previous year.
Read the full article on: CBC
