Canada home sales broke a 14-year record in January
Canada home sales had a dismal start to the year, at their lowest since 2009.
According to the Canadian Real Estate Association’s (CREA) latest report, home sales recorded between December 2022 and January 2023 were at a 14-year low, dipping back down to 3%.
The CREA says it essentially gave back all of the small gains the housing market made in December, “rejoining the mild downward trend observed since last summer.”
CREA
“The big question on everyone’s minds after last year was what will housing markets do in 2023?” said Jill Oudil, chair of the CREA, in a statement.
“We may have to wait another month or two to see what buyers are planning this year since new listings are currently trickling out at near-record low levels, but that should change as the weather warms.”
A rise in home sales in cities like Hamilton, Burlington, and Quebec City was more than offset by declines in greater Vancouver, Victoria, Calgary, Edmonton and Montreal, reads the report.
However, CREA’s senior economist Shaun Cathcart says things are looking up for the spring.
“Early 2023 feels a lot like 2019, where after a year in which it became much harder to qualify for a mortgage, everyone was wondering if the market would pick up in the spring,” he said.
“In 2019 the market started off slow, as there wasn’t much to buy. It took off once spring listings started to come out.”
He adds that the Bank of Canada’s interest rate hikes might have reached their max, giving home buyers more confidence in getting a mortgage.
“Buyers are likely feeling increasingly confident in taking on variable rate mortgages, and 2023 will probably be a good window of opportunity to be able to engage in a calmer home search and buying experience following the intense market conditions of the last few years,” explained Cathcart.
The number of newly listed homes, on the other hand, picked up by 3.3% last month, thanks to increases across BC.
However, despite these small gains nationally, even Canada’s home listings are at a historical low, hitting the lowest level for that month since 2000.
CREA
On the bright side, the drop in listings also came with a drop in home prices.
The national average home price was $612,204 in January, down 18.3% from the same month last year.
CREA
This price is heavily influenced by sales in two of Canada’s most expensive housing markets, says the CREA — greater Vancouver and the Greater Toronto Area.
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