Canada’s Real Estate Losses Are Piling Up
In October 2023, the Canadian Real Estate Association (CREA) reported a 5.6% month-over-month decline in national home sales recorded over Canadian MLS Systems.
This dip was attributed to reduced sales in major markets across Canada, as indicated by CREA’s statistics. Despite the month-to-month decrease, the actual number of transactions in October 2023 was 0.9% higher than the same month in 2022.
Larry Cerqua, chair of CREA, noted that the data suggested potential homebuyers might be delaying their purchases, while some sellers might be postponing their plans until the spring of the following year. Shaun Cathcart, CREA’s senior economist, highlighted the persistently high housing demand nationwide but expressed skepticism about its immediate impact on the existing home market for the rest of the year and likely not until spring 2024.
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Newly listed homes also experienced a 2.3% month-over-month decline in October, marking the first decrease since March. With sales outpacing new listings, the national sales-to-new listings ratio dropped to 49.5%, reaching a 10-year low.
CREA reported that there were 4.1 months of inventory at the end of October 2023 on a national basis, up from a low of 3.1 months in May but still below the long-term average of nearly five months.
The Aggregate Composite MLS Home Price Index (HPI) decreased by 0.8% month-over-month in October 2023, signaling a softening of home prices in certain parts of British Columbia. However, the HPI was up by 1.1% on a year-over-year basis.
The actual national average home price in October 2023 was $656,625, representing a 1.8% increase compared to October 2022, according to CREA’s data.
Information for this story was found via CREA, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
