What is Going on with the Housing Market?
August 2024 Update
August was another quiet month for Canada’s real estate market. According to the Canadian Real Estate Association (CREA), home sales went up slightly by 1.3% compared to July but were down 2.1% from last year.
The national average home price remained stable, hovering around $650,000, which is a minor 0.1% increase from last August. The MLS Home Price Index, CREA's preferred method for tracking prices, stayed unchanged from July but was down 3.9% compared to the previous year, putting the average price just above $700,000.
New listings rose again in August, up 1.1% from July. There were about 177,450 properties on the market, an 18.8% increase compared to a year ago. However, this is still roughly 10% below the long-term average. The sales-to-new listings ratio ticked up slightly to 53%, meaning there are currently about four months' worth of available inventory.
Interest rate cuts from the Bank of Canada haven't significantly impacted the market so far. CREA's senior economist, Shaun Cathcart, explains that this isn't unexpected. "With more favorable interest rates expected later this year and into 2025, it makes sense that buyers are holding off for better affordability, especially since prices remain fairly steady across the country," said Cathcart.
CREA Chair James Mabey added, "As more rate cuts are expected between now and next summer, we may see demand pick up faster, but it’s clear we’re not there yet."
I’d love to hear your thoughts! Feel free to share feedback, topic suggestions, or questions. You can reach me here on LinkedIn or via email. Let’s keep the conversation going!