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Home sales activity recorded over Canadian MLS® Systems rose again in November, building on October’s surprise jump.

Sales were up 2.8% in November compared to October, and now stand 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 increases in smaller cities in Alberta and Ontario. (Chart A)

“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 of Canada's latest 50-basis point cut together with a loosening of mortgage rules could mean a more active winter market than normal.”

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.

Chart A

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. (Chart B)

Chart B

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. “If you’re looking to buy or sell a property in the coming months, the first step is always to contact a REALTOR® in your area.”

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.

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.

Source: CREA