There was little change in the month-over-month results from the Canadian Real Estate Association (CREA). Still, it appears potential sellers are holding out alongside the buyers for the foreseeable future.
National home sales dropped by 0.9 per cent in November compared to last month—meanwhile, the amount of newly listed properties dipped by 1.8 per cent since October 2023.
“I wouldn’t expect anything too headline-grabbing from the resale housing market for the next few months,” said Larry Cerqua, chairperson of CREA. “That’s a good thing because a market that looks to be stabilizing in balanced territory increasingly suggests the soft-landing scenario,” continued Cerqua.
“While it was clear from about August that a lot of buyers were probably going to head back to the sidelines until at least next spring, a surprising number of sellers nonetheless chose to try their luck this fall,” said Shaun Cathcart, CREA’s senior economist.
“Not getting offers they were willing to accept, it’s looking like many of them are also now resigned to hunker down until next year. It’s probably a good move given that recent expectations around interest rate cuts suggest it might be a somewhat more active spring market than we thought.”
Month over month, the Aggregate Composite MLS Home Price Index (HPI) decreased by 1.1 per cent in November 2023, indicating a softening of the market since the summer’s close. The market will be watching if month-over-month declines drop in December in reaction to a stabilized demand-supply balance.
Although price reductions continue in Ontario, areas such as Halifax, Winnipeg, and the Fraser Valley are also seeing a softening of housing prices. Prices are beginning to climb in other parts of Canada, such as Alberta, Saskatchewan, New Brunswick, Prince Edward Island, and Newfoundland.
