Canadian home sales see slight September increase

National home sales

Home sales recorded in MLS systems climbed 1.9% on a month-over-month basis in September 2024, reaching their highest level since July 2023. Actual (not seasonally adjusted) monthly activity came in 6.9% above September 2023.

This increase was led by the Greater Toronto Area and Hamilton-Burlington, Montreal and Quebec City, as well as Greater Vancouver and Victoria.

New listings posted a 4.9% month-over-month rise in September. There were 185,427 properties listed for sale on all MLS systems at the end of September, up 16.8% from a year earlier but still below historical averages of around 200,000 listings for that time of the year.

With sales rising by less than new listings in September, the national sales-to-new listings ratio eased to 51.3%, down from 52.8% in August. However, it remains to be seen if those new listings result in higher sales in October.

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.

"The beginning of September saw a burst of new supply for buyers to choose from before things generally quiet down for the winter," James Mabey, CREA chair, said in a statement.

"While some buyers may choose to take advantage, others may be inclined to wait as the bulk of future rate cuts from the Bank of Canada are now expected to show up in a matter of months as opposed to years."

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Other highlights

There were 4.1 months of inventory on a national basis at the end of September, down from 4.2 months at the end of August. The long-term average is 5.1 months of inventory.

CREA also notes that prices at the national level have remained mostly flat since the beginning of the year.

The non-seasonally adjusted National Composite MLS Home Price Index stood 3.3% below September 2023, a smaller decline compared to the 3.9% declines recorded in July and August. It's likely negative year-over-year comparisons will continue to shrink given the weakness in prices seen towards the end of 2023.

The actual (not seasonally adjusted) national average home price was $669,630 in September 2024, up 2.1% from September 2023.

The CREA represents over 160,000 realtors working through 69 real estate boards and associations.

Sources

1. CREA: Canadian Home Sales Edge Up Again Following Third Interest Rate Cut (October 15, 2024)