Canada’s housing market continued its upward trend in November 2024, as it recorded gains in both sales activity and prices, according to the latest report from the Canadian Real Estate Association (CREA). This marks the sixth consecutive month of sales growth, further solidifying the market’s recovery since mid-year when the first cut to the overnight lending rate was made.
Key urban centers such as the Greater Toronto Area, Greater Vancouver, Calgary, and Montreal all saw increased activity, with notable gains also recorded in several smaller cities across Alberta and Ontario.
Sales growth persists
Home sales in November 2024 increased by 2.8% compared to October. Since May 2024 – just before the first interest rate cut in June – sales have risen by a cumulative 18.4%. This sustained growth reflects stronger buyer demand across the country.
“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.”
Home prices show largest monthly increase since July
The National Composite MLS® Home Price Index (HPI) rose 0.6% from October to November, marking the largest month-over-month increase since July 2024. While prices had been relatively stable for much of the year, the November increase suggests renewed upward pressure on home values.
The non-seasonally adjusted National Composite MLS® HPI stood 1.2% below November 2023, the smallest decline since last April.
Meanwhile, the actual – not seasonally adjusted – national average home price for November 2024 was $694,411, up 7.4% from November 2023.
Fewer listings available
The total number of homes for sale declined in November. There were a little more than 160,000 properties listed on Canadian MLS® Systems at the end of the month, representing an 8.9% increase from the same period last year. However, this total remains below the long-term average of 178,000 listings for this time of year.
National inventory levels continued to shrink last month, making conditions more competitive for buyers. There were 3.7 months of inventory on a national basis at the end of November, down from 3.8 months in October. This marks the lowest inventory level in 14 months.