Canadian home sales saw a slight increase in August 2024, rising by 1.3% from July, according to the Canadian Real Estate Association (CREA). Despite this uptick, the overall housing market remains in what experts describe as a "holding pattern." Shaun Cathcart, CREA’s Senior Economist, noted that while there are signs of recovery thanks to the Bank of Canada's interest rate cuts, many potential buyers are still waiting for improved affordability before entering the market.
New listings also grew marginally, increasing by 1.1% over the previous month, with notable gains in Calgary and Edmonton. However, this increase in listings has not been enough to significantly boost market activity. The sales-to-new-listings ratio remained steady at 53%, indicating balanced market conditions, but far from a more dynamic rebound.
Housing prices have stayed relatively stable, with the national average price only rising by 0.1% compared to the same time last year. The MLS® Home Price Index (HPI) showed no month-over-month change, and it was down 3.9% year-over-year, reflecting a more subdued market across much of the country. Inventory remains below historical averages, which has kept the market from fully recovering.
While the Bank of Canada’s recent rate cuts have brought some relief, experts expect the market to remain slow until there are more substantial changes in affordability or economic conditions. CREA Chair James Mabey suggested that upcoming rate cuts could bring more buyers off the sidelines, but the market's full recovery may not happen until later in 2025.
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