As winter descends upon Canada, the housing market is witnessing a notable slowdown in sales, prices, and new listings. Homebuyers and sellers seem to be adopting a cautious approach, possibly influenced by the anticipation of rate cuts by the Bank of Canada in the upcoming spring.

Sales and Listings Overview:

  • National home sales registered a year-over-year decline of 0.9%, while month-over-month figures saw a more significant drop of 11.9% from October to November.
  • The sales-to-new listings ratio has leveled out at 49.8%, indicating a more balanced market with less competition and stable pricing.
  • Larry Cerqua, Chair of the Canadian Real Estate Association (CREA), suggests a stabilizing market in balanced territory, hinting at a potential soft landing scenario.

Regional Variances in Sales:

  • Most housing markets experienced a month-over-month sales decline of over 10%, with Winnipeg and Regina leading at 27% and 24.3%, respectively.
  • Notable exceptions include Saint John and Hamilton-Burlington, which saw increases of 11.7% and 2.3% in month-over-month sales.

Year-Over-Year Sales Trends:

  • Ontario markets, including Greater Toronto and Hamilton-Burlington, witnessed year-over-year drops in sales, while the Prairies, British Columbia, and the East Coast performed relatively better.
  • Year-over-year sales growth exceeded 10% in markets like Saint John, Halifax-Dartmouth, Edmonton, Regina, and Saskatoon.

Impact on Prices:

  • As housing demand stabilizes, prices across the country are declining from summer peaks.
  • In-demand markets like Hamilton-Burlington, Kitchener-Waterloo, and Greater Toronto experienced drops of 2% or more since the previous month.
  • Some markets, including Hamilton-Burlington, Kitchener-Waterloo, and Regina, have already seen prices fall below last year’s levels, providing opportunities for previously priced-out buyers.

New Listings and Inventory:

  • National new listings decreased by 22.7% from October but were up by 10.5% from the previous year.
  • Locally, new listings dropped by over 20% month-over-month in various markets, including Greater Vancouver, Edmonton, London and St. Thomas, Ottawa, Halifax-Dartmouth, and Greater Toronto.
  • Despite the month-over-month decline, year-over-year listings are generally up, suggesting a more stable inventory situation compared to the previous year.

Conclusion and Recommendations:

As the winter market unfolds, whether you’re considering buying, selling, or both, it’s crucial to consult with a local real estate agent to understand the specific conditions in your area. This strategic approach can help you navigate the evolving landscape of the Canadian housing market.

About the Author: Pritish Kumar Halder

Pritish Kumar Halder is a real estate expert with a keen interest in analyzing market trends and providing valuable insights. With a background in housing market dynamics, Pritish brings a wealth of knowledge to assist both buyers and sellers in making informed decisions. Stay updated on the latest real estate developments by following Pritish Kumar Halder’s expert analysis.