Canada Housing Research Brief

Residential sector gaining momentum across most segments. Home sales inched upwards in November, jumping 2.8 per cent monthly. This comes after sales surged nearly 7.0 per cent in October, as lower borrowing costs – which have been trending down since June – have prompted some buyers to return from the sidelines. The median price of a single-family home jumped 0.7 per cent in November, marking the sixth-consecutive monthly increase. Some risk  do remain in Canada’s residential sector, however, especially in the for-owned condo market. This segment has seen sale prices drop for nearly 14-consecutive months, which – on an annual basis – translated into a 4.0 per cent price decline in November. The combination of weakening investor demand amid negative cash flow and an abundance of new supply has put a drag on the sector at large.