2023-11-15 14:45:49
Residential property sales fell 5.6% in October across Canada, continuing their downward trend, show statistics released Wednesday by the Canadian Real Estate Association (CREA).
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In addition to this decline, the number of properties listed on MLS also declined by 2.3% and even property prices fell by 0.8% month over month.
Sales also declined in October, a 5.6% month-over-month decline.
“This significant decline is the result of a decrease in sales in most of the country’s major markets,” specifies the ACI.
However, the actual number of transactions increased by 0.9% compared to the same month last year.
“It’s only November, but it appears many potential buyers have already started hibernating,” said Larry Cerqua, president of the ACI. The October data also revealed that some sellers might postpone their project until next spring,” explains Larry Cerqua, president of the ACI.
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Despite these recorded declines, the real average price of properties sold in the country in October 2023 stood at $656,625, an increase of 1.8% compared to the same month last year.
However, prices have started to fall in some markets.
“While the decline in prices remains a trend mainly observed in Ontario, property prices are also starting to decline in certain regions of British Columbia,” the CREA said in a press release.
Despite this slowdown, demand for housing remains “extremely high” across Canada.
“This demand will likely not translate into increased sales in the current housing market until the end of the year; in fact, probably not before spring 2024, at the earliest,” explains Shaun Cathcart, senior economist at the ACI.
The organization instead believes that there might be a resurgence in sales next spring, depending on the decisions that will be made by the Bank of Canada on the key rate.
“It will really be a question of whether the Bank of Canada will have to raise rates once more or whether, between now and March, we will simply be looking at how soon the Bank will make its first interest rate cut,” says Shaun Cathcart.
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