Houses beginning to flood the market, while buyers take a break
Even with interest rates dipping, the Canadian housing market continues to cool, with home sales hitting a multi-year low last month. Sales activity dropped by 4.3 per cent across the country.
Even with interest rates dipping, the Canadian housing market continues to cool, with home sales hitting a multi-year low last month. Sales activity dropped by 4.3 per cent across the country, according to new data.
Real estate prices continued their downward trajectory last month, with the price of a typical home dropping 0.4 per cent to $679,900. Annually, that figure is down 3 per cent and 20.2 per cent from its peak in March 2022.
According to the Canadian Real Estate Association’s (CREA) latest data, home prices are now at a four-year low, a level not seen since March 2021 during the COVID-19 pandemic.
While home sales picked up on a monthly basis in October, the housing market may not see any significant stimulation until next year.
“After a brief pause in September, home sales across Canada picked back up again in October, rejoining the trend in place since April,” said CREA’s senior economist Shaun Cathcart on Monday.
“With interest rates now almost in stimulative territory, housing markets are expected to continue to become more active heading into 2026, although this is likely to be tempered by ongoing economic uncertainty.”
A total of 189,000 properties were listed for sale on all Canadian MLS Systems at the end of last month, a 7.2 per cent increase from October 2024.
“The Home Price Index edged up 0.2 per cent month-over-month but was down 3 per cent on a year-over-year basis,” CREA writes.
“New supply declined 1.4 per cent month-over-month in October. Combined with an increase in sales activity, the sales-to-new listings ratio tightened to 52.2 per cent compared to 51 per cent recorded in September.”
Meanwhile, the national long-term average for the sales-to-new listings ratio is 54.9 per cent, which is “generally consistent with balanced housing market conditions.”
This is partly because buyers are taking a break while sellers are growing. For example, Toronto’s real estate board reported a surge in inventory last month.
While home prices have fallen across the country, they remain 25.6 per cent above where they were a decade ago.
A “bidless” real estate approaching? Disposable incomes crushed by inflation. Let the Liberal Carney government destroy the economy for the next 6/9 months. Prices will drop further.