New listings increase in Calgary and Edmonton, offsetting a decline in the Greater Toronto Area
In June, national home sales rose following the Bank of Canada's first interest rate cut since 2020.
August also saw a modest increase after the second rate cut in late July, though the overall housing market appears to remain in a holding pattern.
Shaun Cathcart, senior economist at CREA, commented, “Despite some fledgling signs of life to kick off the long-awaited monetary policy easing cycle, Canadian housing market activity still looks to be stuck in the same holding pattern it's been in all year.”
He also pointed out that with interest rates expected to become more favourable later this year and into 2025, buyers might be waiting for improved affordability, as prices remain relatively stable across much of the country.
In August 2024, home sales increased by 1.3 percent month-over-month, reaching the highest levels since January and the second highest in more than a year.
Actual monthly sales, however, were 2.1 percent lower compared to August 2023. New listings also grew by 1.1 percent from July, led by increased supply in Calgary, with Edmonton adding new listings as well. In contrast, the Greater Toronto Area saw a decline in new properties.
The MLS Home Price Index (HPI) stayed flat month-over-month in August, though it was 3.9 percent lower than a year earlier. The national average sale price was almost unchanged from August 2023, up just 0.1 percent year-over-year, with the national average home price recorded at $649,100.
There were about 177,450 properties listed for sale across Canadian MLS Systems by the end of August, an increase of 18.8 percent from a year ago, though the number remained more than 10 percent below historical averages of around 200,000 listings for this time of year.
The national sales-to-new listings ratio reached 53 percent in August, slightly above July’s 52.9 percent. This ratio has stayed relatively constant since April, with a long-term average of 55 percent. A ratio between 45 and 65 percent generally indicates balanced market conditions.
James Mabey, chair of CREA, noted, “With more interest rate cuts now expected between now and next summer, the stage is set for a faster return of demand, but we're clearly not there just yet.” He emphasized that new supply typically peaks during April, May, June, and September.
“The first week of September saw not only a third rate cut, but also a lot of new properties for buyers to consider,” Mabey said. He encouraged those considering buying or selling this fall to contact a REALTOR® for guidance.
The inventory of homes remained stable, with 4.1 months of inventory by the end of August, compared to 4.2 months in July. This figure has remained between 3.8 and 4.2 months since last October, while the long-term average is closer to five months.
The non-seasonally adjusted National Composite MLS HPI was down 3.9 percent compared to August 2023, mostly due to price gains from earlier in the year followed by declines in the latter half of 2023. Year-over-year comparisons are expected to improve in the coming months.
