Canadian Home Sales Surge in October Amid Market Shifts

Toronto, ON – Canadian home sales experienced a significant surge in October, marking the highest monthly activity since April 2022. According to the Canadian Real Estate Association (CREA), national home sales jumped by 7.7% month-over-month, with the Greater Toronto Area (GTA) and British Columbia’s Lower Mainland recording double-digit increases.

The unexpected spike in October sales has been attributed to a combination of market conditions. Shaun Cathcart, CREA’s Senior Economist, noted that the surge likely stemmed from an increase in new listings in September, coupled with a 50-basis-point interest rate cut announced late in October.

“This sharp increase offers a glimpse of what could happen in 2025 as mortgage rates are expected to decline further,” Cathcart explained.

Despite the rise in sales, new listings saw a 3.5% drop in October, following a 4.8% increase in September. The decline was led by fewer new listings in the GTA, creating tighter market conditions. The national sales-to-new listings ratio rose to 58%, a shift toward a seller’s market but still within balanced territory.

Key Market Highlights

• National home sales increased by 7.7% from September to October.
• Year-over-year activity for October was up 30%.
• The MLS® Home Price Index (HPI) edged down 0.1% month-over-month but remained flat overall for 2024.
• The national average home price rose by 6% year-over-year to $696,166.

October’s figures underline evolving dynamics in Canada’s housing market. The number of properties listed on Canadian MLS® Systems stood at 174,458 at the end of October, up 11.4% from a year earlier but still below historical norms. Meanwhile, inventory levels tightened, with 3.7 months of inventory available nationally—the lowest in over a year.

James Mabey, CREA Chair, highlighted the interplay between buyer readiness and available inventory. “Buyers have been in the market since interest rates started to decline earlier this year, but many were waiting for the right properties to come up. September’s listings surge appears to have satisfied that demand,” Mabey said.

The CREA report suggests that price trends are stabilizing after several months of volatility, with the 2.7% year-over-year decline in the HPI marking the smallest drop since May. This indicates a gradual recovery from the price corrections seen in late 2023.

Looking ahead, CREA predicts activity levels will depend heavily on inventory availability as the market approaches 2025. The next CREA housing report is expected on December 16, 2024.

For detailed regional statistics and insights, visit CREA’s website.