Home sales in Canada continued to climb in November, driven by falling interest rates, with the winter market expected to be unusually hot.
In October, home sales reached their highest level since Oct. 2022.
The monthly report from the Canadian Real Estate Association highlighted that the trend continued in November, rising 2.8% from October and 26% since Nov. 2023 – up from 30,042 units sold in Nov. 2023 to 37,855 sold this year.
“Not only were sales up again but with market conditions now starting to tighten up, November also saw prices move materially higher at the national level for the first time in almost a year and a half,” said Shaun Cathcart, CREA’s Senior Economist.
The Bank of Canada continued cutting interest rates in December, bringing the rate down to 3.25% and making mortgages more affordable for homebuyers.
“Consumer spending and housing activity both picked up, suggesting lower interest rates are beginning to boost household spending,” reads the bank’s release.
Home sales increased despite listings falling 0.5% compared to last month, following a 3% decrease the month before. However, listings did increase by 8.9% since November of last year.
The national average sale price increased 7.4% since last Nov, rising from $646,621 to $694,411.
Home prices saw their biggest monthly increase since July 2023.
“October and November marked the start of the long-awaited rebound in resale housing activity, with the combination of lower borrowing costs and more properties to choose from coaxing buyers off the sidelines,” said James Mabey, CREA Chair.
The price of homes rose in every single province. The only region that saw an annual decrease was the Northwest Territories. The biggest increase between Nov. 2023 and 2024 was seen in Manitoba, at 14%. British Columbia saw the smallest gain, at just under 2%.
Gains in Greater Vancouver, Greater Toronto, Calgary, and Montreal were the primary drivers of increased home sales activity. Gains were also notable in smaller cities in Alberta and Ontario.
Greater Vancouver and Greater Toronto saw housing prices fall compared to last year. Calgary and Montreal each saw housing prices increase compared to Nov. 2023.
The Canadian Real Estate Association expects the historically stagnant winter housing market to be more active than usual.
“Normally, we might expect this market rebound to take a pause before resuming in the spring; however, the Bank of Canada’s latest 50-basis point cut together with a loosening of mortgage rules could mean a more active winter market than normal,” said Cathcart.
However, the housing supply is limited.
The association highlighted that there are 3.7 months of inventory nationally, decreasing slightly from the previous month and reaching the lowest level seen in 14 months.
According to the Canadian Real Estate Association, a seller’s market results from 3.6 months of supply or less, and a buyer’s market occurs when there are 6.5 months of supply or more.