The Canadian housing sector has shown resilience and growth into November 2024, with both sales volumes and property prices on the rise, according to the latest insights from the Canadian Real Estate Association (CREA). This uptick marks the sixth month in a row of increasing sales, a trend that began following the initial cut to the overnight lending rate in mid-2024.

Sustained Increase in Sales

Sales of homes in November 2024 jumped by 2.8% from October. Since May, when the first rate cut occurred, there has been a total increase of 18.4% in sales, indicating a robust demand from buyers. Major cities like Toronto, Vancouver, Calgary, and Montreal have all seen heightened activity, alongside smaller markets in Alberta and Ontario.

Shaun Cathcart, Senior Economist at CREA, commented on the situation, noting, "Sales continue to rise, and as the market tightens, we're seeing significant price increases across the country for the first time in over a year. Given the recent rate adjustments by the Bank of Canada and more flexible mortgage regulations, we might see an unusually active market this winter."

Price Surge Observed

The National Composite MLS® Home Price Index noted a 0.6% increase from October to November, the sharpest monthly rise since July 2024. Although prices had been relatively flat earlier in the year, the latest figures indicate a new upward trend. The non-seasonally adjusted National Composite MLS® HPI was only 1.2% lower than in November 2023, which is the smallest annual drop since last April. The average national home price reached $694,411 in November 2024, a 7.4% increase from the previous year.

Decrease in Property Listings

The supply of homes for sale dipped in November, with just over 160,000 properties available on MLS® Systems, a figure which, despite being 8.9% higher than last year, is still below the typical inventory for this season at 178,000 listings. The national inventory dropped to 3.7 months, from 3.8 in October, highlighting the lowest inventory in 14 months and intensifying competition among buyers.

These developments suggest that Canada's real estate market is not only recovering but potentially gearing up for a stronger than usual winter season, fueled by economic policy changes and market dynamics.