Recent Data from CREA Indicates a Positive Shift Amidst Previous Weakness
TORONTO – BUSINESS – The Canadian Real Estate Association (CREA) has released data suggesting a resurgence in the housing market following a subdued second half in 2023. With home sales on Canadian MLS® Systems increasing by 3.7% from December 2023 to January 2024, and building on a 7.9% rise the previous month, the market is showing signs of revitalization.
This rebound places activity levels in line with the more robust periods of spring and summer 2023, though it remains about 9% below the decade’s average. Shaun Cathcart, CREA’s Senior Economist, notes, “While sales are on the rise and market conditions have notably tightened, the price trends in regions with the most significant sales increases over the past two months continue to decline. This suggests a market that is beginning to recover but is still overcoming the challenges of the past two years.”
Key Highlights from the Report:
- A 3.7% month-over-month increase in national home sales in January.
- A 22% year-over-year rise in actual (not seasonally adjusted) monthly activity for January 2024, marking the most substantial gain since May 2021.
- Newly listed properties saw a modest increase of 1.5% from December to January.
- The MLS® Home Price Index (HPI) dropped by 1.2% month-over-month, yet showed a slight 0.4% increase from the previous year.
- The national average sale price saw a 7.6% year-over-year increase in January 2024, with the actual average price standing at $659,395.
Regional performance varied, with the Greater Toronto Area (GTA), Hamilton-Burlington, Montreal, Greater Vancouver, the Fraser Valley, Calgary, and most markets in Ontario’s Greater Golden Horseshoe and cottage country leading the gains.
Despite the promising signs of recovery, the market’s overall activity is still considered below average, attributed partly to the low base effect from January 2023, which marked one of the weakest beginnings in nearly two decades.
Larry Cerqua, Chair of CREA, emphasized the renewed vigour in the market, attributing it to pent-up demand. He advises those looking to engage in the 2024 housing market to start planning with a REALTOR® soon, anticipating a different landscape compared to the previous two years.
The national sales-to-new listings ratio tightened further to 58.8% in January, indicating a shift towards a more balanced market. Inventory levels also decreased to 3.7 months, pointing to a tightening supply relative to demand.
While price declines have been most pronounced in Ontario, particularly within the Greater Golden Horseshoe area, other regions like Alberta and Newfoundland and Labrador are witnessing price stability or increases, showcasing the market’s varied recovery pace across the country.
