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Special Report

Canada Housing Research Brief

November 2023

Canada’s Housing Market Softens as Prices
Give Up Spring Gains

Housing market losing momentum. After single-family home prices fell 17 per cent over the course of last year, Canada’s housing market began to recover as the Central Bank paused its rate hiking cycle in March. Prices grew 8 per cent over the spring. However, as inflationary pressures remained sticky, the Bank of Canada resumed rate hikes in June. This has caused Canada’s housing market to cool once again as bond yields rose and mortgage rates hit new highs. Many potential buyers paused their search, and monthly prices have now contracted for three consecutive months, down 1.1 per cent in October. Home sales also declined 5.6 per cent, bringing the sales-to-new listings ratio to 49.5 per cent — a 10-year low. With this measure indicating a buyers market, further price easing is likely to occur over the short-term. Due to limited supply, coupled with historic immigration, the long-term outlook remains optimistic.  

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