October was a very productive month for Canada’s housing market, with a boost in sales despite a decline in new listings.
According to new data from the Canadian Real Estate Association (CREA), home sales activity recorded over Canadian MLS Systems in October spiked by 7.7% from September, reaching its highest level since April. Actual (not seasonally adjusted) monthly activity came in 30% higher from the levels recorded in October 2023.
The home sales spike came while new listings posted a 3.5% month-over-month decline in October, a situation attributed to a lower supply in the Greater Toronto Area. However, CREA noted October’s new listings decline came after the 4.8% jump in September – thus, the nation’s new supply is still at some of the highest levels since mid-2022. There were 174,458 properties listed for sale on all Canadian MLS Systems at the end of October, up 11.4% from one year earlier but still below historical averages for that time of the year.
As for the cost of housing, the National Composite MLS Home Price Index dipped by 0.1% from September to October, with prices at the national level continuing to stay mostly flat since the beginning of the year. The actual (not seasonally adjusted) national average home price was $696,166 in October 2024, up 6% from October 2023.
“The jump in home sales last month was definitely an October surprise, although with the big interest rate cut of 50 basis points announced during the last week of the month, the increase was more likely related to the surge in new listings we saw in September,” said Shaun Cathcart, CREA’s senior economist. “There probably won’t be another rush of new supply like that until next spring, and at that point, mortgage rates should be close to their expected lows, as well. With that in mind, you can think of the October numbers as a sort of preview for what we might expect to see next year.”
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