Canadian Home Sellers Joining Buyers on the Sidelines: CREA

The Canadian Real Estate Association (CREA) released statistics revealing that national home sales changed only slightly on a month-over-month basis in November 2023.

Statistics released on December 14, 2023 by the Canadian Real Estate Association (CREA) have revealed that national home sales were little changed on a month-over-month basis in November 2023.

Image courtesy of CREA

According to CREA, home sales recorded over Canadian MLS Systems decreased by 0.9 per cent from October to November 2023, which was the smallest decline since July 2023.

The actual number of transactions came in just 0.9 per cent below November 2022, according to the statistics.

“I wouldn’t expect anything too headline-grabbing from the resale housing market for the next few months,” said Larry Cerqua, chair of CREA. “That’s a good thing, because a market that looks to be stabilizing in balanced territory increasingly suggests the soft-landing scenario.”

“While it was clear from about August that a lot of buyers were probably going to head back to the sidelines until at least next spring, a surprising number of sellers nonetheless chose to try their luck this fall,” said Shaun Cathcart, CREA’s senior economist. “Not getting offers they were willing to accept, it’s looking like many of them are also now resigned to hunker down until next year. It’s probably a good move given that recent expectations around interest rate cuts suggest it might be a somewhat more active spring market than we thought.”

According to the statistics, the number of newly listed homes fell 1.8 per cent on a month-over-month basis in November which followed a 2.2 per cent decline in October.

The statistics also noted that with new listings down by more than sales in November, the national sales-to-new listings ratio tightened slightly to 49.8 per cent in comparison to 49.4 per cent in October. According to CREA, this was the first time this measure has increased since April. The long-term average for the national sales-to-new listings ratio is 55.1 per cent.

According to the statistics, there were 4.2 months of inventory on a national basis at the end of November 2023, which was up slightly from 4.1 months at the end of October. CREA noted that this measure looks to be stabilizing, and is still almost a full month below its long-term average of near five months of inventory.

The Aggregate Composite MLS Home Price Index (HPI) declined by 1.1 per cent on a month-over-month basis in November 2023, reflecting softer market conditions since the end of the summer, according to the statistics.

The statistics noted that while price declines remain mainly an Ontario phenomenon, home prices are also now starting to soften in the Fraser Valley, Winnipeg, and Halifax. Elsewhere in Canada prices are mostly holding firm or in some cases continuing to climb. The Aggregate Composite MLS HPI was up 0.6 per cent on a year-over-year basis.

The actual national average home price was $646,134 in November 2023, up 2 per cent from November 2022, according to the statistics.

You might also like