Canadian Real Estate Market Sees Resurgence in Sales Despite Price Variations Across Regions
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In January 2024, Canadian MLS Systems recorded a 3.7% increase in home sales activity compared to December 2023, following a 7.9% rise the previous month. Despite this, the market remains approximately 9% below the 10-year average, although it has regained momentum similar to the stronger months of 2023. Shaun Cathcart, CREA's Senior Economist, noted a tightening of market conditions and increased competition among buyers, with prices in some areas still trending lower. The market seems to be turning a corner after two years of weakness, with notable gains in regions like the Greater Toronto Area, Hamilton-Burlington, Montreal, Greater Vancouver, the Fraser Valley, Calgary, and parts of Ontario's Greater Golden Horseshoe and cottage country.
The year-over-year comparison reveals significant improvement, with transactions in January 2024 surpassing those in January 2023 by 22%, marking the largest gain since May 2021. However, this increase is largely attributed to the exceptionally low activity at the start of 2023. New listings saw a modest 1.5% increase month-over-month but remain close to the lowest levels since June. Larry Cerqua, Chair of CREA, emphasized the emergence of early signs of activity, driven by pent-up demand. He suggested preparing a game plan for buying or selling property in 2024, anticipating a different market compared to the previous two years.
The sales-to-new listings ratio tightened to 58.8% in January, reflecting a seller's market, while the national inventory decreased to 3.7 months, below the long-term average of five months. Despite this, the Aggregate Composite MLS® Home Price Index (HPI) declined by 1.2% in January 2024, with notable decreases in Ontario markets, particularly the Greater Golden Horseshoe. However, the national average home price rose by 7.6% year-over-year to $659,395. Overall, while the market shows signs of recovery, there are variations in price trends across different regions, emphasizing the importance of local market insights for accurate assessment and decision-making.
Read the full article on: CREA
