This fall, as the weather got cooler, Canada’s housing market picked up steam again. The Bank of Canada had cut interest rates several times since June, which helped boost home sales. In October and November, the number of homes sold jumped almost 10% across the country, showing a solid rebound after a slow couple of years. By the end of 2023, the market activity was back to where it was in late 2019, right before the pandemic hit.
Home Resales on the Rise
In Canada, the number of homes being resold is on the rise, suggesting that buyers are gaining confidence. Although the market is getting better, the increase is gradual rather than rapid. If interest rates decrease in the coming months, we could see even more buyers stepping in. However, issues with affordability may continue to limit the influx of new buyers.
Housing Market Trends in Canada
Canada’s housing market is bouncing back, but the pace varies from place to place.
- In the Prairies, Quebec, and Atlantic Canada, things are picking up, with many places performing even better than they did before the pandemic.
- On the other hand, British Columbia and Ontario are slowly improving, especially in cities like Vancouver and Toronto. Still, these regions have some distance to cover. It seems that more cuts in interest rates may be necessary to fully bring these markets back to life.
More Homes Available Increases Inventory
In 2023, Canada saw a rise in the number of homes for sale. This resulted in the highest number of homes listed in over four years. But in October and November, new listings went down, making the balance between how many homes are available and how many people want to buy tighter again.
In November, the number of home sales compared to new listings was 0.59. This suggests that home prices might increase. This trend has been particularly visible in regions like the Prairies, Quebec, and Atlantic Canada, where prices have risen significantly compared to last year.
Home Prices Start Going Up Again
At the beginning of the year, some areas had weaker demand, but now home prices in Canada are starting to rise this fall.
- In cities like Vancouver and Toronto, more people want to buy homes, which has caused prices to rise the fastest they have in over a year.
- Nationwide, the average home price increased by 0.6% from October to November, the largest monthly jump since July 2023.
Even with this recent increase, home prices are still 1.2% lower than they were a year ago. However, prices are expected to keep rising as the market improves until 2025.
What to Look Forward to in 2024 and Later?
As we look to the future, prices are expected to go up slowly as the market gets better. Big increases in prices might need more cuts in interest rates to really make housing more affordable. The growth should keep moving at a steady rate, giving chances for both buyers and sellers as the market changes in 2024.