Home sales activity recorded over Canadian MLS systems rose again in November, building on October’s surprise jump, according to a report released Monday by the Canadian Real Estate Association.
Sales were up 2.8% in November compared to October, and now standing a cumulative 18.4% above where they were in May, just before the first interest rate cut in early June. The November increase was driven by gains in Greater Vancouver, Calgary, Greater Toronto and Montreal, as well as by some double-digit sales activity in smaller cities in Alberta and Ontario, said the national organization.
“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. “Normally we might expect this market rebound to take a pause before resuming in the spring; however, the Bank’s latest 50-basis point cut together with a loosening of mortgage rules could mean a more active winter market than normal.”
Photo-Canadian Real Estate Association
The National Composite MLS® Home Price Index (HPI) rose 0.6% from October to November 2024 – the largest month-over-month increase since last July.
November Highlights:
- National home sales rose 2.8% month-over-month.
- Actual (not seasonally adjusted) monthly activity came in 26% above November 2023.
- The number of newly listed properties edged down 0.5% month-over-month.
- The MLS Home Price Index (HPI) climbed 0.6% month-over-month but was still down 1.2% on a year-over-year basis.
- The actual (not seasonally adjusted) national average sale price was up 7.4% on a year-over-year basis.
CREA said new listings edged down 0.5% month-over-month in November, building on a larger 3% decline in October. With sales also rising in November, the national sales-to-new listings ratio tightened to 59.2%, up from 57.3% in October. The
measure had been in the 52% to 53% range between April and September this year. The long-term average for the
national sales-to-new listings ratio is 55%, with a sales-to-new listings ratio between 45% and 65% generally consistent
with balanced housing market conditions.
“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.
There were a little more than 160,000 properties listed for sale on all Canadian MLS systems at the end of November 2024, up 8.9% from a year earlier but still below the long-term average for that time of the year of around 178,000 listings, said the report, adding there were 3.7 months of inventory on a national basis at the end of November 2024, down from 3.8 months at the end of October and the lowest level in 14 months. The long-term average is 5.1 months of inventory, with a seller’s market being below about 3.6 months and a buyer’s market being above 6.5 months.
“The non-seasonally adjusted National Composite MLS HPI stood 1.2% below November 2023, the smallest decline since
last April. The non-seasonally adjusted national average home price was $694,411 in November 2024, up 7.4% from November 2023,” it added.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024.
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