Home sales activity recorded over Canadian MLS Systems in January was up by 3.7% from the previous month, according to the latest data from the Canadian Real Estate Association (CREA).
The actual (not seasonally adjusted) monthly activity came in 22% above January 2023’s levels, the largest year-over-year gain since May 2021.
CREA noted that while activity is now back on par with 2023’s relatively stronger months recorded over the spring and summer, 2024 began at roughly 9% below the 10-year average. CREA also offered the reminder that January 2023 recorded the worst start to almost any year in the past two decades.
“Sales are up, market conditions have tightened quite a bit, and there has been anecdotal evidence of renewed competition among buyers,” said Shaun Cathcart, CREA’s senior economist. “However, in areas where sales have shot up most over the last two months, prices are still trending lower. Taken together, these trends suggest a market that is starting to turn a corner but is still working through the weakness of the last two years.”
National gains were once again led by the Greater Toronto Area (GTA), along with Hamilton-Burlington, Montreal, Greater Vancouver and the Fraser Valley, Calgary, and most markets in Ontario’s Greater Golden Horseshoe and cottage country.
The number of newly listed homes inched up 1.5% on a month-over-month basis in January, although it was also close to the lowest level since last June. The Aggregate Composite MLS Home Price Index fell by 1.2% on a month-over-month basis in January, with declines located predominantly in Ontario markets, particularly the Greater Golden Horseshoe and to a lesser extent in British Columbia. Elsewhere in Canada prices are mostly holding firm or in some cases – Alberta and Newfoundland and Labrador – continuing to climb.
“The market has been showing some early signs of life over the last couple of months, probably no surprise given how much pent-up demand is out there,” said Larry Cerqua, chairman of CREA. “There’s a consensus that the market will probably look quite a bit different this year compared to 2022 and 2023, so if you’re hoping to buy or sell a property in 2024, contact a realtor in your area and get your game plan ready today.”
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