Canada’s housing market is booming! As this piece details, home sales surged 1.1 percent in August, the fifth straight month of an increase. The Canadian Real Estate Association (CREA) just announced that home sales last month were 40,257. This represented a jump from 39,522 sales in August 2024. This steady march points to a national average cumulative increase of 12.5 percent in transactions since March.
That’s far below the actual national average sale price of homes in August, which soared to an all-time high of $664,078. This figure still stands as a 1.8 percent increase from the same month last year. Shaun Cathcart, CREA’s senior economist, described the streak as “the new normal.” He argues that it stands a chance of building some momentum this fall, particularly as the time of year typically brings more new listings to market.
The combination of increased sales and new listings spurred a 2.6 percent month-over-month increase in this metric. By the end of August, Canada had 195,453 listings for sale. That was a whopping 8.8 percent jump over the prior year. This swelling of sales and new listings is a welcome sign of a healthy, competitive market as we head into the fall.
These soon-to-be made financial decisions have the potential to drastically alter the future real estate environment. Watch for a surprise interest rate cut from Bank of Canada this week! Combined with the change, the ability to buy down rates could create more buyer interest, including inking up more transactions over the next several months.
As we come to the end of what’s considered the summer slow season, the Canadian housing market seems ready to keep roaring. Inventory is increasing and sales activity is booming. Stakeholders, from providers to patients, are eagerly anticipating how these trends will play out over the next few months and beyond.
