Steady Home Sales and Price Stability Amid Accelerated Interest Rate Cuts CREA September Market Report

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The Canadian Real Estate Association's (CREA) September statistics report shows a steady increase in home sales for the third consecutive month following interest rate cuts. While September's sales saw a 1.9% rise from August, the growth has been modest overall, preceded by a 1.3% gain in August and a slight dip in July. Shaun Cathcart, CREA’s Senior Economist, noted that while sales are trending upward, the gains have not been dramatic. He also highlighted that with interest rate cuts expected to come faster than previously anticipated, some buyers may delay purchases, potentially boosting sales in 2025 instead.

CREA has revised its forecast, predicting a 6.6% rise in national home sales by 2025, up from its earlier estimate of 6.2%. This revision comes in response to the Bank of Canada's accelerated timeline for reducing interest rates, with expectations of reaching a "neutral" rate by next spring or summer. In terms of listings, September saw a notable 4.9% growth in new listings, and total active listings reached 185,427 by month’s end. However, the number of listings remains below historical averages for this time of year, keeping market conditions relatively balanced.

Despite increased listings, the sales-to-new listings ratio eased slightly in September to 51.3%, reflecting a somewhat slower pace of sales compared to the influx of new properties. The national average home price rose 2.1% year-over-year, reaching $669,630, while the National Composite MLS® Home Price Index saw a marginal increase of 0.1% from August. Overall, prices have remained stable since the beginning of the year, suggesting a market holding steady as it awaits more significant changes in interest rates in the coming months.

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