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This development points to the sort of major Real Estate Market Growth these adjustments have instigated and the rising inventory, sending a message of fundamental change at a critical juncture.
The Canadian housing market was the talk of the town in October 2024, offering a surprisingly resilient performance as total home sales on the MLS system rose 7.7%. This is the highest sales level since April of 2022 and one that surprised many analysts and others in the industry.
Source: Freepik.com
CREA’s senior economist Shaun Cathcart described the sales data in October as a “preview” of what might be in store for 2025, suggesting perhaps mortgage rates will continue downward, supportive to demand.
However, new listings slowed in October to decrease 3.5% from September, which could hold supply in check over the next few months. This cautious optimism would thus come with the challenge of balancing supply against demand as buyers and sellers adapt to evolving market trends.
Impact on Home Prices
While sales were red-hot, the tale of home prices remained complex. The MLS HPI registered a year-over-year decline of only 2.7%, its smallest decrease since May 2024. This implies that though prices are still finding their bottom, the overall downtrend is moderating. Indeed, national average home prices (non-seasonally adjusted) increased by 6% from October 2023 levels, reversing the losses of late 2023.
Higher demand, along with tightening inventory levels, is slowly stabilising prices, especially within high-demand regions. Analysts highlight that this Real Estate Market Growth is expected to maintain stability as interest rates continue to normalise.
Source: Freepik.com
Inventory and Market Trends
Levels of inventory were at the lowest in more than a year at 3.7 months of supply, down from a peak of 4.1 months in September. The sales-to-new-listings ratio rose to 58%, showing that the market continues to reach the point where conditions favour sellers. Still, despite hitting new lows compared to historic norms, overall inventory remains limited, and new listings are a crucial factor in sustaining real estate market growth.
Indeed, market performance has shown an increasing trend to adapt to economic changes, especially with the slowing rate of inflation and the easier servicing of some borrowings. Such developments are positioning buyers and sellers more positively as they enter 2025. With inflation pressures easing, more buyers may perceive affordability as improving, thus leading to further engagement in the market.
How GC Mortgages Can Support Homebuyers
A dynamic real estate market requires navigation support, and we believe GC Mortgages could be the one that provides it. As a leading mortgage brokerage in Canada, we specialise in helping buyers seize opportunities created by real estate market growth and changing conditions.
Whether you are shopping for a competitive rate on a 3-year fixed mortgage or need customised advice to close financing, our team is here to help.
With competitive rates and tailored solutions, GC Mortgages ensures that your journey to home ownership is smooth and stress-free. Our expertise in the Canadian mortgage landscape allows us to guide you through the complexities, ensuring you make informed decisions that align with your financial goals. Trust us to help you navigate the opportunities of today’s real estate market growth.
Conclusion
In Canada, the recovering real estate market is emerging with the help of increasing sales, stabilising prices, and renewed confidence among buyers. With the momentum of real estate market growth building, the overall outlook for 2025 appears promising despite current stock shortages.
If you’re ready to explore opportunities in this evolving market, becoming informed and seeking professional advice is crucial. Contact GC Mortgages today to explore your mortgage options and take the first step toward securing your future in this dynamic landscape.
Sources: globenewswire, benefitsandpensionsmonitor
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