Property prices are starting to strengthen after a tricky few years, and the pent-up demand exhibited by buyers means new sales are outstripping the number of homes coming onto the market.
As an experienced brokerage, we believe it’s important to speak to a broker or agent to better understand the buying and selling dynamics of your area.
New data released by the Canadian Real Estate Association (CREA) can be interpreted in a number of ways, so the expertise and local knowledge of a respected brokerage will help you traverse the current market landscape successfully.
The ratio of new sales to new listings is 58.8%, according to the CREA. This means there’s a diminishing number of homes actually for sale. The dynamics of supply and demand suggest this will further fortify price levels.
CREA said that at the beginning of the fourth quarter of 2023, there was an equal share of homes sold and those coming onto the market.
A balanced market should produce a 45%-65% ratio in favour of new listings, so some readjustment is still required.
The Canadian MLS System shows home sales up 3.7% from last December to January – a result on par with the strongest months of 2023. However, it remains below the 10-year average.
We believe the market is in its initial recovery stages. When interest rates begin to taper down – as they’re likely to do in a number of Western economies later this year – we’ll see the speed of the recovery accelerate.
Below, we’ve listed some of the key findings from the CREA survey. We hope you can factor them into your approach to selling and buying your next home. If you’re considering a move soon, we’d be delighted to assist you. The pent-up buying demand will deliver great results for well-presented homes.
- The average home price across Canada was $659,395 in January, up 7.6% on the previous 12 months, one of the best results internationally.
- Sales were up 3.7% in January 2024 compared to the previous January.
- Listing rose 15% but did not keep pace with the number of sales.
- January 2024 was more positive than the previous January, with agent inquiry activity leaping 22% – a great sign of a recovery on the way.
- The biggest value gains came from Ontario, Great Toronto, Montreal and Hamilton-Burlington.