Canadian Real Estate Prices Slip Further As Sellers Suddenly Surge

Canadian real estate markets continue to soften, with few signs of a break. Canadian Real Estate Association (CREA) data shows markets weakened further in October. The price of a typical home (composite benchmark) slipped further from peak, as sales failed to keep up with the sudden surge of sellers. 

Canadian Real Estate Prices Are Moving Lower

Canadian real estate prices slipped further last month. The composite benchmark fell -1.4% (-$10,300) to $731,100 in October, marking a fourth month of declines. Prices remain higher than last year, but only 1.1% ($7,700) higher. At this rate, it would take just one more month for annual growth to plunge back into negative territory. 

Canadian Real Estate Prices

The composite benchmark price of a home across Canada.

Source: CREA; Better Dwelling.

Positive annual growth may sound like prices are doing fine. This is due largely to a base effect that’s concealing the recent market erosion. Compared to the peak reached in March 2022, prices are now 14.6% lower—just 3 points above where prices bottomed in December 2022.   

Canadian Real Estate Prices Resume Fall From Peak

The percentage change in price after hitting the all-time high in March 2022.

Source: CREA; Better Dwelling.

Canadian Real Estate Sales Increase, But Dwarfed By New Sellers 

Canadian real estate sales made a mild move higher from last year. Annual growth came in at 0.9% pushing sales to 33,921 homes in October. Not nearly enough to compete with the 16.0% rise of new listings, with 70,012 listed for sale. It’s an unusually high number, last seen in 2020—following the re-opening of markets post-lockdowns. Only 4 Octobers in the past 30 years have seen more listings.  

Canadian real estate markets are softening, and more sellers are appearing across the country. This is helping to bring prices lower, along with soft home sales. Falling mortgage rates likely did help with a minor uptick in sales, but not to the extent that falling prices motivated sellers to dispose of property. 

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  • Scott 11 months ago

    It looks like the law of unintended consequences has finally passed third reading…

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