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  • Writer's pictureJose Gustavo Salcedo

Home Listings Surge and Buyer Demand Cools in Canada’s Major Real Estate Markets

The Canadian real estate landscape is experiencing a notable shift as home listings surge and buyer demand cools in the country’s largest markets. This change is especially prominent in the greater Vancouver and Toronto areas, which have now officially transitioned into a buyer’s market. Let’s break down the key takeaways from this real estate trend:

1. Growing Inventory: New listings in the Greater Toronto Area (GTA) have surged by a staggering 44% in September, reaching a total of 16,258 properties. This increase is even more pronounced in the downtown condo market, where listings have shot up by 50% compared to the previous year. Other cities, including Vancouver, Calgary, and Ottawa, also witnessed increases in listings, although to a lesser degree.

2. Return of Sellers: One of the most striking trends in recent months has been the return of sellers to the housing market. Rising interest costs have motivated an increasing number of homeowners to put their properties on the market.

3. Buyer’s Market: The market dynamics in Vancouver and Toronto have shifted to favor buyers. Analysts suggest that this shift, characterized by high inventory and falling prices, is likely to persist as long as interest rates remain high and continue to impact affordability.

4. Impending Challenges: Despite the growing inventory, high interest rates, ongoing affordability concerns, and the looming possibility of a recession are expected to pose significant obstacles to a rapid market recovery. It’s projected that any substantial acceleration in the market may have to wait until interest rates come down, which is anticipated to happen in 2024.

Regional Housing Market Roundup:

Here’s a snapshot of the September 2023 real estate statistics from some of Canada’s major regions:

Greater Toronto Area:

– Sales: 4,642 (-7.1% YoY)

– Benchmark Price (all housing types): $1,119,428 (+3%)

– New Listings: 16,258 (+44.1%)

– Active Listings: 18,912 (+39.8%)

Greater Vancouver Area:

– Sales: 1,926 (+13.2% YoY)

– Benchmark Price (all housing types): $1,203,300 (+4.4%)

– New Listings: 5,446 (+28.4%)

– Active Listings: 11,382 (+9.2%)

Montreal Census Metropolitan Area:

– Sales: 2,738 (+9%)

– Median Price (single-family detached): $549,000 (+3%)

– Median Price (condo): $402,000 (+6%)

– New Listings: 5,872 (+2%)

– Active Listings: 16,398 (+10%)

Calgary:

– Sales: 2,441 (+29%)

– Benchmark Price (all housing types): $570,300 (+8.7%)

– New Listings: 3,191 (+21.6%)

– Active Listings: 3,369 (-24.5%)

Ottawa:

– Sales: 946 (No change)

– Average Price (residential property): $675,412 (+2.7%)

– Average Price (condominium): $425,968 (+1%)

– New Listings: 2,259 (+9.8%)

– Active Listings: 2,997 (+14%)

In conclusion, the Canadian real estate market is undergoing a significant transformation with a shift towards favoring buyers, marked by rising inventory and falling prices. As we move forward, the impact of interest rates, affordability concerns, and economic uncertainties will continue to influence the market, making it essential for buyers and sellers alike to remain vigilant and adaptable.

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