In August 2023, Canadian home sales experienced a 4.1% month-over-month decline, as reported by the Canadian Real Estate Association (CREA). This decrease was influenced by declines in various regions, including Greater Vancouver, the Fraser Valley, Montreal, Ottawa, Hamilton-Burlington, London, and St. Thomas.

Despite this decline, the number of transactions in August 2023 was 5.3% higher compared to August 2022. Larry Cerqua, Chair of CREA, noted that with sales slowing and new listings returning to more normal levels, the balance between demand and supply is improving. Buyers have more time and choice in the market.

The dip in activity in August was anticipated as it followed the Bank of Canada’s rate hike in July. Shaun Cathcart, CREA’s Senior Economist, mentioned that although demand remains strong, the current slowdown on the buyer side may help stabilize prices, especially considering the ongoing housing affordability crisis.

New listings increased by 0.8% on a month-over-month basis in August, following a cumulative gain of over 24% between March and July. The sales-to-new listings ratio eased to 56.2%, aligning with its long-term average of 55.2%.

The inventory level in August 2023 stood at 3.4 months on a national basis, up from 3.2 months in July but below the long-term average of about five months.

While national home prices leveled off, regional differences re-emerged. Quebec and the East Coast saw solid price growth, followed by British Columbia and the Prairies. Ontario exhibited mixed trends, with both increases and declines. Year-over-year, the Aggregate Composite MLS® Home Price Index (HPI) was up 0.4% in August 2023, marking the first year-over-year increase since September 2022. The national average home price in August 2023 was $650,140, up 2.1% from the same month in 2022.

These statistics reflect the dynamic nature of Canada’s real estate market, with regional variations and ongoing efforts to address affordability challenges.

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