Toronto, ON – January 20, 2025 – As the winter months settle in, the Canadian real estate market is showcasing signs of resilience and optimism for the coming year. According to recent data from Canadian MLS® Systems, home sales activity dipped slightly in December 2024, yet the market’s overall performance continues to reflect a promising trajectory as we move closer to spring 2025.

In December, national home sales dropped by 5.8% compared to November. However, sales remain 13% higher than their levels in May 2024, just prior to the Bank of Canada’s pivotal interest rate cut in June. This uptick highlights the sustained recovery of buyer activity throughout the latter half of the year.

Fourth Quarter Trends Point to Growth

The final quarter of 2024 brought a 10% increase in sales compared to Q3, making it one of the stronger quarters for Canadian housing activity over the past two decades, excluding pandemic-era anomalies. The interplay of easing interest rates, improved affordability, and cautious optimism has contributed to this recovery.

“While we observed a dip in sales in December, it’s clear that limited supply rather than waning demand was the primary factor,” said Subodh Sharma, Broker of Record. “Buyers remain engaged and ready to act, but inventory challenges have tempered the pace. We anticipate a significant resurgence in activity come spring 2025 as new listings emerge in tandem with interest rates stabilizing at lower levels.”

December Highlights:

• National home sales: Fell 5.8% month-over-month but remain 19.2% higher than December 2023.
  
• Newly listed properties: Dipped slightly by 1.7% month-over-month.
  
• MLS® Home Price Index (HPI): Increased 0.3% month-over-month and was down only 0.2% year-over-year.
  
• National average sale price: Rose by 2.5% year-over-year, reaching $676,640 in December 2024.

The non-seasonally adjusted National Composite MLS® HPI registered just 0.2% below December 2023 levels, marking the smallest year-over-year decline since April 2024 when prices first entered negative territory.

Looking forward, market analysts are optimistic about the trajectory of Canadian real estate. With interest rates nearing their expected bottom and an anticipated influx of new listings in spring, 2025 is shaping up to be a pivotal year for both buyers and sellers.

“The real estate market is poised for a surge as the weather warms and pent-up demand is met with fresh supply,” added Sharma. “This alignment of factors creates an ideal opportunity for Canadians to achieve their real estate goals.”

As we step into the new year, one thing is certain: the Canadian housing market is setting the stage for a rebound, driven by economic recovery and renewed consumer confidence. Buyers and sellers alike should prepare for a dynamic market environment in the months ahead