In November, Canada’s housing market continued its upward trend. This is according to the Canadian Real Estate Association (CREA) who just released their Monthly Report showing increases in both sales activity and prices. This marks the sixth consecutive month of sales growth. Highlighting the market’s recovery that started in the middle of the year after the initial cut in the overnight lending rate.
Major urban regions including the Greater Toronto Area experienced heightened activity, with significant improvements also noted in various smaller cities Ontario.
Growth in Sales Continues
Home sales in November saw a rise of 2.8% compared to October. Since May 2024, just prior to the initial interest rate reduction in June, sales have experienced a total increase of 18.4%. This ongoing growth indicates a heightened demand from buyers.
According to CREA’s Senior Economist Shaun Cathcart, “Not only were sales up again, but with market conditions now starting to tighten up, November also saw prices move materially higher at the national level for the first time in almost a year and a half”. He goes on to note that, “Normally we might expect this market rebound to take a pause before resuming in the spring. However, the Bank of Canada’s latest 50-basis point cut together with a loosening of mortgage rules could mean a more active winter market than normal.”
Fewer listings available
The overall number of homes available for sale saw a decrease in November. Just over 160,000 properties were listed on Canadian MLS® Systems, which reflects an 8.9% increase compared to the same time last year.
National inventory levels also continued to decline last month. This resulted in a more competitive environment for buyers. By the end of November, there were 3.7 months of inventory available. This a slight decrease from 3.8 months in October. Importantly, it is also the lowest inventory level recorded in the past 14 months.