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Special Report

Canada Housing Research Brief

December 2023

Housing Market Softens Further, but Possible
Rate Cuts Could Spur Activity Early Next Year

Market participants wait on the sidelines. Canada’s housing market remained sluggish in November as the number of sales edged down 0.9 per cent monthly. The median price of a single-family home also contracted for the third consecutive month, falling 1.2 per cent. On an annual basis this translated into a 1.0 per cent gain. Muted sales activity can largely be attributed to the Bank of Canada resuming its monetary tightening cycle in June. This pushed many potential homebuyers back to the sidelines and curbed the momentum that began to build in February. Despite this, the nation’s sales-to-new listings ratio inched up to 49.8 per cent — the first increase since April — as a pullback in new listings outpaced the contraction in sales activity. Forced sales remained minimal and some potential sellers are also now waiting until activity picks up in the early parts of next year amid potential interest rate cuts. 

 

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