Canada Housing Market Is not Falling it is Stabilizing
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The Canadian real estate market isn’t collapsing—it’s adjusting to a new normal after years of volatility. Recent data, such as the notable rise in home sales in October 2024 (the highest since April 2022), points to a market that’s rebalancing rather than declining. The narrative of a falling market misses the bigger picture: buyers and sellers are realigning expectations in response to higher interest rates and broader economic changes.
Market indicators support this view of stabilization. The national sales-to-new-listings ratio tightened to 58%, and months of inventory dropped to 3.7, both signs of a more balanced environment. While the national average home price rose 6% year-over-year to $696,166, the MLS Home Price Index only declined by 0.1% month-over-month—suggesting price stability rather than volatility. If inventory continues to decline, the market may again lean in favour of sellers, potentially applying upward pressure on prices.
Interest rates and employment figures remain key factors in shaping the market’s trajectory. Past rate hikes—and potential future cuts—will significantly influence momentum. Although affordability remains a concern and inflation risks persist, current trends suggest the housing market is regaining its footing. Rather than interpreting every shift as a sign of trouble, the situation reflects a foundational reset toward long-term balance.
Read the full article on: REAL ESTATE MAGAZINE
