Regardless of snow on the ground, the Canadian Real Estate Association’s (CREA) October report indicates winter has arrived for the nation’s housing market.
The report, released on Wednesday, shows selling prices remaining stagnant, along with fewer sales and fewer new listings.
According to CREA, the number of homes sold on the group’s Multiple Listing Service fell by 5.6 per cent in October compared to September.
There were fewer homes changing hands and even fewer new listings for sale in the first place, as more homeowners are choosing to stay put rather than explore the market. New listings slipped by 2.3 per cent during the month. That’s the first decline since March.
Homebuyers in hibernation
“We’re only in November, but it appears many would-be homebuyers have already gone into hibernation,” said Larry Cerqua, CREA chairperson. “The October numbers also revealed some sellers may be shelving their plans until next spring. That said, there are still many people active in the market and looking to get deals done this year.”
“We know housing demand is extremely high all across the country, but October’s resale data was further confirmation that it probably won’t be manifesting itself in the existing home market for the remainder of this year and likely not until spring 2024 at the earliest,” said Shaun Cathcart, CREA’s senior economist.
“The rebound in activity this past spring was an example of what we might see next year. It will come down to whether the Bank of Canada must increase interest rates again or whether by next March it’s simply a matter of how soon we’ll see the Bank make its first cut.”
According to CREA, activity in Canada’s largest cities was primarily responsible for the sales slowdown, with declines across the country. Victoria was down by 13 per cent, 10 per cent in Vancouver, nine per cent in Calgary, 5 per cent in Toronto, 11 per cent in Ottawa, and 10 per cent in Montreal.
For homebuyers looking for a market in their favour, the choice is still Ontario, followed by British Columbia. In October 2023, the Aggregate Composite MLS Home Price Index (HPI) fell by 0.8 per cent month-over-month. Some areas of B.C. are already seeing a softening of property prices. Year-over-year, the Aggregate Composite MLS HPI increased by 1.1 per cent.
CREA said that, in contrast, prices are still rising in Alberta, New Brunswick, and Nova Scotia, as homebuyers continue seeking out the relative affordability of these areas.
The actual (not seasonally adjusted) national average home price was $656,625 in October 2023, up 1.8 per cent from October 2022.
