Canada’s housing market is showing signs of improvement, according to the latest report from the Canadian Real Estate Association (CREA). Despite interest rates reaching a 22-year high, there has been an increase in housing market activity. Home sales rose by 3.7% between December 2023 and January 2024, with notable gains in regions like the Greater Toronto Area, Hamilton-Burlington, Montreal, Greater Vancouver, the Fraser Valley, Calgary, and various markets in Ontario’s Greater Golden Horseshoe and cottage country.
However, the number of newly listed homes only saw a modest increase, and while sales activity has improved, it remains below the 10-year average. The Bank of Canada’s key lending rate remains at five percent, aimed at controlling inflation, which reached 3.4% in December. There’s speculation about potential interest rate cuts in the future, although the central bank hasn’t confirmed any plans yet.
Despite the increase in activity, home prices have shown a mixed trend. The Aggregate Composite MLS Home Price Index experienced a 1.2% decline in January, particularly in Ontario, while prices in other regions like Alberta and Newfoundland and Labrador continue to rise. Overall, the national average home price in January 2024 was $659,395, up 7.6% from January 2023.
