Canadian Housing Market Sees Sales Surge in October

The Canadian housing market experienced a remarkable resurgence in October 2024, achieving the highest sales levels since April 2022. This impressive momentum reflected growing buyer confidence across the nation, including major hubs like Toronto and Vancouver.

October Delivers a 7.7% Sales Increase

According to the Canadian Real Estate Association (CREA), home sales soared by 7.7% in October compared to September. This jump marked the most significant monthly increase in over two years. Notably, markets such as the Greater Toronto Area (GTA) and British Columbia’s Lower Mainland led the charge, reporting double-digit gains.

This surge is a result of a shift in market sentiment fueled by renewed buyer confidence. A recent 50-basis-point interest rate cut further encouraged activity, bringing optimism for continued growth into 2025.

New Listings Decline Amid Rising Demand

While sales climbed, new listings fell by 3.5% month over month in October. This followed a strong 4.8% increase in September, indicating a tightening market. The GTA, a critical area influencing national trends, saw the most significant drop in new listings.

As a result, the national sales-to-new listings ratio rose to 58%, up from 52% in September, moving the market closer to balance. The long-term average for this metric is 55%, signaling a gradual shift toward stable conditions.

Inventory Levels Approach Seller’s Market Territory

Inventory levels continued to decline in October, with only 3.7 months of supply available, down from 4.1 months in September. This represents the lowest inventory level in over a year, edging closer to conditions that favor sellers.

Despite a year-over-year inventory increase of 11.4%, the total remains below historical averages. Buyers seem eager to act quickly, anticipating tighter conditions in the coming months.

Home Prices Show Stability

The National Composite MLS® Home Price Index (HPI) recorded a marginal 0.1% decrease from September to October. However, year-to-date trends reveal overall price stability, with October 2024 prices just 2.7% lower than the previous year—a marked improvement from earlier declines.

The average home price reached $696,166 in October, a 6% increase compared to October 2023. This growth reflects a rebound from the price troughs seen at the end of 2023.

What Lies Ahead for the Canadian Housing Market

With mortgage rates expected to hit their lowest levels by spring 2025, the Canadian housing market is poised for further growth. However, sustained momentum will depend on the availability of new listings in the coming months.

As demand remains strong and supply tightens, both buyers and sellers should anticipate a dynamic landscape heading into the new year.