The 2024 real estate market started slow, with interest rates above 6%, but sales activity grew as the Bank of Canada cut rates. Momentum picked up in the last quarter of 2024, pushing December home sales up by 19.2% year over year according to the Canadian Real Estate Association.
“While housing market activity may take a breather over the winter with fewer properties for sale, the fall market rebound serves as a good preview of what could happen this spring,” said James Mabey, CREA Chair. “Spring in real estate always comes earlier than both sellers and buyers anticipate. The outlook is for buyers to start coming off the sidelines in big numbers in just a few months from now, so if you’re looking to buy or sell a property in 2025, contact a REALTOR® in your area and start getting ready today.”
2024 Marked a Slow Return to Normalcy
While many buyers stayed on the sidelines in the first half of the year, the fourth quarter of 2024 saw a surge in activity, ending as one of the strongest sales quarters in the past 20 years (excluding the pandemic).
Annual residential sales in 2024 increased by 7.3% nationally from 2023, with year-over-year sales gains reported in all but three markets: Fraser Valley, Calgary, and Niagara Region.
Sherbrooke CMA and Edmonton lead the way with the strongest annual sales improvements from 2023, increasing by 25.5% and 24.8% respectively. Other markets that experienced an over 10% increase in annual sales from 2023 include Montreal CMA (20.4%), Victoria (10.9%), Regina (13.2%), and Winnipeg (12.3%).
Within Ontario, annual sales improved the most in Ottawa with an 11.6% bump. Meanwhile, Toronto’s sales gains were more modest with just a 2.5% increase from 2023.
Buyers in 2024 benefited from a massive increase in selection as national new listings reached 901,763—an 11.2% increase from annual numbers in 2023. This also marks the first time that annual new listings reached over 900,000 in at least eight years.
Inventory surged the most in Fraser Valley, Ottawa, and Greater Vancouver with annual new listings increases of 19.5%, 19.1%, and 17.3% respectively. Victoria, Greater Toronto, and Kitchener-Waterloo also experienced notable new listings increases, with rises of over 15% from 2023.
December Closes the Year on a High Note with Increased Sales
Winter is not typically a prime season for real estate, but December still showed sales improvements from last year. Nationally, there were 27,643 sales in December, marking a 19.2% jump from 2023.
Quebec was particularly active compared to last year as Trois Rivières CMA, Montreal CMA, Gatineau CMA, Quebec CMA, and Saguenay CMA all reported an over 40% increase in sales. British Columbia also reported a substantial boost in December sales with Vancouver, Victoria, and Fraser Valley experiencing a 32.3%, 24.4%, and 20.2% increase from 2023.
While Ontario’s sales growth was less pronounced than in Quebec and British Columbia, there were some exceptional standouts. December year-over-year sales improved by 31% in Hamilton-Burlington and 22.5% in Kitchener-Waterloo. These December sales surges may hint at where demand could spike in the upcoming spring market.
Good News for Buyers: Prices Continue to Drop
Despite demand building up over the last few months of 2024, average home prices decreased in many major markets. Notably, the national average price decreased by 2.6% from November to $676,640.
Month-over-month average prices decreased in Calgary (-2.4%), Hamilton-Burlington (-3.7%), Ottawa (-1.5%), Toronto (-3.5%), Montreal CMA (-3.0%), and a few others. However, compared to six months ago, average prices have come down significantly in most markets.
For instance, in Hamilton-Burlington, the average price has fallen by 10.2% from June, and in Toronto, it has come down by 8.2%. Although prices will likely increase as demand returns in the spring, prospective buyers looking to avoid a potential price surge may find that now is a good time with prices lowered and inventory stable.
Declining Month-Over-Month Sales Linked to Strong October and November
Month-over-month sales paint a different picture than year-over-year numbers. With the exception of Sherbrooke CMA and Saguenay CMA, every market posted a month-over-month drop in sales in December. However, this is less of a sign of declining demand and more an indication that the fall market was exceptionally busy.
“The number of homes sold across Canada declined in December compared to a stronger
October and November, although that was likely more of a supply story than a demand story,” said Shaun Cathcart, CREA’s Senior Economist. “Our forecast continues to be for a significant
unleashing of demand in the spring of 2025, with the expected bottom for interest rates coinciding with sellers listing properties for sale in big numbers once the snow melts.”
As the 2025 real estate market begins to unfold, it’s important to stay up to date with the latest market trends and updates. For expert guidance, connect with a trusted local real estate professional to navigate the market and plan your next move.
