Canada's home sales up 30% in surprise October surge
Canada's home sales up 30% in surprise October surge
Canada's housing market saw a surprising upswing in October 2024, with home sales climbing 30% compared to the same month last year, according to the Canadian Real Estate Association (CREA). This growth is attributed to a combination of reduced mortgage rates and increased buyer confidence following a 50-basis-point interest rate cut by the Bank of Canada late in the month.
The surge in sales was broad-based, with significant activity in major markets like the Greater Toronto Area (GTA) and British Columbia’s Lower Mainland, which posted double-digit growth. Buyers appear to have responded to a rare balance of favorable conditions: a temporary increase in available listings during September and a gradual stabilization of housing prices.
Nationally, the average home price rose by 6% year-over-year to $696,166 in October, although the benchmark Home Price Index showed a modest 0.1% monthly decline. This suggests that while sales volumes surged, prices remained relatively stable, reflecting varying market dynamics across provinces.
Ontario led the resurgence with a 36.7% year-over-year increase in sales, fueled by higher inventory levels and a balanced sales-to-new-listings ratio. The province's average home price rose to $878,620, up 3.1% from last year. Similarly, British Columbia and Quebec recorded notable activity increases, with Quebec's housing market showing a strong seller's bias.
The robust activity has tightened market conditions nationally, with inventory levels falling to their lowest in over a year. Experts caution that sustained demand could deplete this supply, potentially driving prices higher in the coming months. The CREA notes that market activity will depend heavily on new listings, which saw a 3.5% monthly decline in October.
Looking ahead, analysts predict continued momentum into 2025 as further interest rate cuts are expected. However, affordability challenges and regional disparities may temper some of this growth, particularly in high-demand urban centers.