Canada Housing Research Brief

Housing market may be nearing inflection point. In December, Canada’s single-family housing market showed some resilience after a near yearlong correction. National sales rose 1.3 per cent when compared to November, suggesting that buyers may cautiously be emerging from the sidelines in the hopes of getting ahead of the market. New listings also continued to trend down, falling 6.4 per cent month-over-month, indicating that rising borrowing costs have not yet caused widespread forced sales. The average single-family home price even increased in Calgary, Edmonton and Montreal on a monthly basis. Decreases in Toronto and Vancouver, however, contributed to an overall 1.6 per cent month-over-month fall in the national average price, with this trend likely to continue through the first quarter of 2023. Nonetheless, the slight uptick in demand and drop in supply could be an early indicator that the market’s adjustment to higher interest rates may soon be over.