Canadian Home Sales Rise in Unseasonably Warm January

The Canadian Real Estate Association reports a second month of rising activity and softening prices in January, with sales up 3.7% from the previous month and 22% from a year ago.

In an unexpected turn of events, the Canadian real estate market experienced a surge in home sales during the unusually warm month of January, according to the latest report from the Canadian Real Estate Association. This increase in sales marks the second consecutive month of heightened activity, coupled with a slight softening of prices.

After adjusting for seasonal variations, January saw a 3.7 per cent increase in sales compared to the previous month. This significant rise of 22 per cent from the same period last year can be attributed to the sluggish market conditions that plagued early 2023, making it one of the slowest starts to a year in the past two decades. Despite this improvement, sales in January still lagged behind the 10-year average by approximately nine per cent.

The province of Ontario witnessed the most substantial sales growth in January, with a notable 6.9 per cent increase on a seasonally adjusted basis. British Columbia also experienced a healthy uptick in sales, rising by 4.5 per cent during the same period. The aggregate benchmark price for a typical home rose by 0.6 per cent year-over-year to reach $717,800, although it dipped by 1.2 per cent from the previous month.

The surge in sales outpaced the number of newly listed properties, which only increased by 1.5 per cent month-over-month. This imbalance between supply and demand has led to a more balanced market environment, providing opportunities for both buyers and sellers.

The Canadian real estate market showed signs of resilience in January, with a notable increase in sales and a slight adjustment in prices. While the market still has room for improvement to reach historical averages, the recent trends indicate a positive trajectory for the industry.