Home sales in Canada saw a significant increase in December, signaling a strong market rebound ahead.
Toronto: In December, home sales in Canada jumped by 19.2% compared to last year. The Canadian Real Estate Association believes this strong finish hints at a solid rebound in 2025.
During the last quarter of 2024, sales rose by 10% from the previous quarter, making it one of the busiest periods in two decades, aside from the pandemic years.
Last month, 27,643 homes were sold across Canada, up from 23,190 in December 2023. This follows a 26% increase in November and a 30% rise in October.
Even though December saw a 5.8% drop in sales from November, it was still 13% higher than in May, right before the Bank of Canada started cutting interest rates.
The current policy rate is at 3.25%, with the next announcement expected on January 29.
Shaun Cathcart, a senior economist at CREA, predicts a big surge in demand this spring as interest rates are expected to hit their lowest point and more sellers will list their homes.
The average sale price in December rose by 2.5% from last year, reaching $676,640.
TD economist Rishi Sondhi described December as a “subdued month” for sales, but noted that it’s typically a slow time of year.
He mentioned that Ontario and B.C. still have a lot of pent-up demand and many homes that will benefit from new federal mortgage rules.
Sondhi expects a solid increase in home sales and prices this year, although there are still uncertainties due to potential tariff issues.
At the end of the year, about 128,000 properties were listed for sale, which is a 7.8% increase from the end of 2023 but still below the usual average of 150,000.
New listings were down by 1.7% month-over-month.
James Mabey, CREA chair, said that while winter might slow down market activity, the fall market gives a good idea of what to expect in spring.
He added that spring always arrives earlier than buyers and sellers think, and he anticipates a surge of buyers in just a few months.
