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Home resales fell by 1.9 per cent across Canada in September, the third month in a row that resale rates have dropped, according to a new report by RBC.

At the same time, more sellers are coming to market right now, the report says, with new listings having increased each month for the past six months. In September, the number of listings surpassed pre-pandemic levels for that time of year by 10 per cent.

RBC’s Monthly Housing Market Update, which was posted last Friday, states that in September, new listings went up by 6.3 per cent across Canada.

It’s good news for those looking to buy a home — prices are expected to “soften” for the rest of the year, potentially continuing into the beginning of 2024, the report stated.

SALES GOING DOWN

Calgary remains a hotspot for home sales in Canada, but the city recorded its first dip in six months in September, with sales dropping by 1.8 per cent.

In other regions across the country, the drop in sales was more dramatic.

Vancouver, for example, saw a 5.6 per cent decrease in home resales. Another market experiencing slower activity in September was Saskatoon, where sales dropped by 3.9 per cent.

Although Toronto only saw a 1.8 per cent decrease in September compared to the previous month, the decrease compared to the season’s peak was 22.4 per cent. Large month-by-month declines in other areas in southern Ontario, such as 14.5 per cent in home sales in the Niagara region and 7.1 per cent in the Hamilton-Burlington area drove the dip in Ontario.

More listings are joining the unsold ones on the market in Ontario, balancing out supply-demand conditions more than before.

The conditions look to be “favouring buyers” now, the report stated, particularly in the Greater Toronto Area, the Niagara region and Barrie. Compared to August, the number of new listings in Toronto went up by 11 per cent in September.

Not all regions saw home resales going down. The rate actually picked up in September in a handful of cities, including Edmonton, Halifax and Montreal, which saw a 7.2, 5.9 and 1.5 per cent increase respectively.

SOME BUYERS ENJOYING SOFTER PRICING

These buying conditions come with dampened prices to the benefit of those looking to purchase a home.

“Ontario markets in and around the GTA posted the largest month-to-month declines in September, while price growth in other areas of the province remained relatively flat,” the report stated.

Between August and September, prices crept up slightly in Vancouver and Victoria, but at a rate less than half of that seen in August.

Prices continue to climb in other regions such as Edmonton, Calgary and Saskatoon, as well as in Newfoundland and Labrador, Moncton and Saint John, N.B.

The report stated that ongoing issues such as higher interest rates and affordability challenges will likely keep buyer demand down in the near future, while the same issues drive more homeowners to consider selling.

“Together these trends would hand buyers more pricing power in the months ahead, driving prices further down in Ontario while restraining gains elsewhere in the country,” the report concluded.

Source: CTV News