Canada's Housing Market Shows Promising Recovery This Fall
Canada’s housing market showed strong signs of recovery as the fall season concluded in November 2024. Lower interest rates, combined with the anticipation of further cuts in the coming year, have encouraged a surge in homebuying activity. After months of hesitation, many buyers are now stepping into the market, translating pent-up demand into transactions.
A Strong Close to the Fall Season
Local real estate boards reported a rise in both resales and prices in November, building on the gains seen in October. Activity levels were significantly higher than the same time last year, with most major markets making strides toward recovery. The only exception was Calgary, which had already experienced strong momentum during the fall of 2023.
As interest rates are expected to decline further in 2025, the housing market’s upward trajectory seems poised to continue.
Inventories and Buyer Opportunities
An increase in housing inventory this year has given buyers more options to explore, fueling the fall season’s growth. While this represents a step toward healthier supply levels, it is far from an oversupply. However, some markets, like Toronto, continue to report ample condo listings, keeping prices in check for now.
Price Trends and Market Activity
Overall, price pressures remain moderate. Some areas, like Toronto and Montreal, saw property values edge up in November, particularly in the single-detached and townhouse segments. For instance:
Toronto: Single-detached and townhouse sales increased by 44% and 46%, respectively, compared to last year. Condo sales were up 36%, but condo prices remained 5% lower year-over-year.
Montreal: Resales jumped by 15% in November, with single-family homes and condos experiencing price growth of 11% and 8%, respectively.
Vancouver: After a slow year, the market showed continued recovery, with sales rising by 1% in November. However, prices remain relatively stable, reflecting affordability challenges.
Calgary: The city remains active, with resales 50% above pre-pandemic levels. Inventory growth driven by robust homebuilding has helped temper price gains.
Looking Ahead
While affordability challenges linger, lower borrowing costs are gradually easing barriers for some buyers. In 2025, further interest rate reductions are expected to bolster recovery, driving demand and creating modest upward pressure on prices in most regions.
As Canada’s housing market heads into the new year, the combination of increased inventory and declining interest rates offers hope for continued stability and growth. Buyers and sellers alike can anticipate a dynamic market with opportunities in the months ahead.