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The Canadian real estate market gained significant momentum in October 2024, with home sales reaching their highest levels since April 2022. A 7.7% month-over-month increase in activity marked a sharp contrast to the modest growth seen in prior months. This resurgence broke a long-standing downturn, reflected in a declining number of Realtors, and surpassed the 10-year monthly moving average for the first time since interest rate hikes began.
The market’s growth presents opportunities and challenges for all participants. Sellers benefit from increased demand, potentially leading to quicker sales and price growth, though rising mortgage delinquencies and pent-up supply could pose risks. Real estate professionals may see greater business opportunities, while buyers face heightened competition and affordability challenges despite lower interest rates and upcoming policy changes, such as extended amortizations and higher insured mortgage limits.
The interplay between supply and demand highlights a shifting landscape. Supply levels remain elevated year-over-year despite a slight monthly decline, offering buyers more choices and stabilizing price growth. However, inventory levels dropped to 3.7 months, nearing a seller’s market. The national average home price of $696,166 reflects stability, with slight variations across regions. Looking ahead, sustained activity hinges on factors like supply constraints, economic conditions, and regional disparities, underscoring the need for strategic decision-making by buyers and sellers alike.
Read the full article on: REAL ESTATE MAGAZINE
