October Home Sales Surge in Canada
October home sales in Canada surged by 30% compared to last year, marking a significant shift in the housing market. According to the Canadian Real Estate Association (CREA), sales also rose 7.7% month-over-month, showing a broad recovery in major markets like Greater Toronto and British Columbia’s Lower Mainland.
The Role of Lower Interest Rates
The Bank of Canada’s interest rate cuts have been a game-changer for the housing market. October’s 50-basis-point reduction, bringing rates to 3.75%, has encouraged many buyers to reenter the market. Sellers, too, are feeling more confident about listing properties, with national average home prices increasing 6% year-over-year to $696,166.
“Buyers are finding the market more favorable with lower borrowing costs, while sellers see prices holding steady,” noted CREA senior economist Shaun Cathcart.
Inventory Challenges Persist
While new listings in October fell 3.5% from the previous month, total inventory across Canada rose 11.4% year-over-year. However, it remains below historical averages, keeping competition tight. Experts suggest the market will see more significant shifts in 2024 as mortgage rates stabilize further.
What’s Next for Canada’s Housing Market?
The October housing market offers a glimpse into 2024 trends, with continued recovery expected as rates drop and supply stabilizes. Buyers and sellers are encouraged to stay informed and act strategically in this evolving landscape.
Learn More
Explore the latest insights on Canada’s real estate market and track the Bank of Canada’s rate changes.
Contact Jared Gibbons for expert guidance on buying or selling in this dynamic market!