Home sales activity recorded over Canadian MLS Systems increased 7.7% on a month-over-month basis in October 2024, reaching its highest level since April 2022, according to a report released Friday by the Canadian Real Estate Association.
“The jump in home sales last month was definitely an October surprise, although with the big interest rate cut of 50 basis points announced during the last week of the month, the increase was more likely related to the surge in new listings we saw in September,” said Shaun Cathcart, CREA’s Senior Economist. “There probably won’t be another rush of new supply like that until next spring, and at that point, mortgage rates should be close to their expected lows, as well. With that in mind, you can think of the October numbers as a sort of preview for what we might expect to see next year.”
Highlights:
- National home sales jumped 7.7% month-over-month in October.
- Actual (not seasonally adjusted) monthly activity came in 30% above October 2023.
- The number of newly listed properties were down 3.5% month-over-month.
- The MLS® Home Price Index (HPI) edged down 0.1% month-over-month and was down 2.7% on a year-over-year basis.
- The actual (not seasonally adjusted) national average sale price was up 6% on a year-over-year basis in October
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Rishi Sondhi, Economist, with TD Economics, said Last month, markets finally responded to the rush of rate relief in the system.
“There had also been some thought that the 50-bps rate cut by the Bank of Canada in October would help change the psychology of a previously subdued market, although it happened later in the month. Supply gains in recent months may have also helped by improving buyer choice,” said Sondhi.
“Even with heady October sales gains, considerable pent-up demand likely still exists in B.C. and Ontario. This should help drive Canadian sales higher through next year, especially with interest rates slated to drop further and stimulative federal policies set to roll out.
“Last month, Canadian average price growth was boosted by compositional forces (i.e., firmer performances in more expensive regions). Stripping away this impact by looking at benchmark prices reveals a much more subdued price backdrop, particularly in B.C. and Ontario where supply/demand balances are still relatively loose. However, markets are much tighter elsewhere in the country, pointing to continued gains.”
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 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list. He was also named by RETHINK to its global list of Top Retail Experts 2024.
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