Residential Real Estate News
Canadian Home Sales Surge in October, Reaching a Two-Year High
Based on new data from the Canadian Real Estate Association (CREA) shows a 7.7% month-over-month increase in home sales activity through Canadian MLS Systems in October 2024, marking the highest level since April 2022.
"The significant jump in October sales was unexpected but likely tied to the surge in new listings we saw in September," said Shaun Cathcart, CREA's Senior Economist. "The 50-basis-point interest rate cut announced at the end of October likely played a role as well. A similar wave of new supply isn't expected until next spring, but by then, mortgage rates should be nearing their anticipated lows. In this sense, October's figures could provide a glimpse into what 2025 may hold."
Regional Growth and New Listings Trends
Sales growth was widespread, with the Greater Toronto Area (GTA) and British Columbia's Lower Mainland recording double-digit increases. Despite a 3.5% decline in new listings in October following a 4.8% surge in September, supply remains at one of its highest levels since mid-2022. The decline in October was largely driven by fewer new listings in the GTA.
With sales up sharply and new listings down, the national sales-to-new listings ratio tightened to 58%, compared to 52% in September. This figure remains within the range of 45% to 65%, which is typically associated with balanced market conditions.
"October's strong sales figures suggest that buyers have been active since interest rates started falling earlier in the summer, waiting for the right properties to hit the market--a trend that became apparent in September," said CREA Chair James Mabey.
Home Prices and Inventory Levels
The National Composite MLS Home Price Index (HPI) dipped slightly by 0.1% from September to October. However, on a broader scale, national home prices have remained stable throughout 2024.
At the end of October, there were 174,458 properties listed for sale on Canadian MLS® Systems, reflecting an 11.4% year-over-year increase but still below historical averages.
National inventory levels stood at 3.7 months at the end of October, down from 4.1 months in September and the lowest level in over a year. For reference, inventory levels below 3.6 months typically indicate a seller's market, while levels above 6.5 months suggest a buyer's market.
Year-over-Year Comparisons
The non-seasonally adjusted National Composite MLS HPI was 2.7% lower than in October 2023, the smallest annual decline since May. As the market rebounds from weak pricing seen in late 2023, year-over-year comparisons are expected to continue improving.
The actual (non-seasonally adjusted) national average home price reached $696,166 in October 2024, a 6% increase from October 2023.
