The Canadian housing market continued its upward momentum in November, driven by increased sales and tightening market conditions. According to the Canadian Real Estate Association (CREA), sales grew by 2.8% compared to October. Since the first interest rate cut in June, sales have soared 18.4%, showing that buyers are increasingly ready to return to the market.
Market Tightens as National Sales Climb
What’s sparking this market momentum? Increased sales activity in Vancouver, Calgary, Greater Toronto, and Montreal, paired with favorable borrowing rates and improved inventory, played a pivotal role in attracting buyers.
While sales were up, new listings weren’t following suit. November saw a slight 0.5% decline in national new listings, adding to October’s 3% drop. Fewer options for buyers have tightened market conditions, with the national sales-to-new-listings ratio rising to 59.2%, up from 57.3% in October. For context, this ratio hovered between 52% and 53% earlier in the year, and a balanced market typically sits between 45% and 65%.
Inventory levels remain well below the long-term average. Just over 160,000 active listings were on the market in November, far from the usual 178,000 for this time of year. Homes are selling fast, too, with the national months-of-inventory figure dipping to 3.7 months—the lowest in 14 months and inching closer to a seller’s market threshold of 3.6 months.
National home prices significantly improved for the first time in over a year as the National Composite MLS HPI was down just 1.2% from November 2023, marking the smallest annual decline since last spring. Meanwhile, the national average home price hit $694,411, up 7.4% year over year.
“Not only were sales up again, but with market conditions now starting to tighten up, November also saw prices move materially higher at the national level for the first time in almost a year and a half,” said Shaun Cathcart, CREA’s Senior Economist. “Normally we might expect this market rebound to take a pause before resuming in the spring; however, the Bank of Canada’s latest 50-basis point cut together with a loosening of mortgage rules could mean a more active winter market than normal.”
Canada’s Top Markets for Home Sales in November 2024
Edmonton and Calgary stood out as the Prairies’ active markets in November, driving significant price increases across the province. Edmonton led the way with a 14.1% year-over-year jump, as average home prices rose from $374,454 to $427,285. Calgary followed closely, with its average home price climbing 13.8%, reaching $631,047 compared to $554,437 in November 2023.
Quebec also saw robust growth, with multiple regions posting double-digit price gains. Saguenay CMA led the province with a remarkable 31.9% year-over-year increase, as prices jumped from $255,099 to $336,417. The growth continued across key markets: Gatineau CMA rose by 13.5% to $484,817, while Quebec CMA followed with a 12.2% increase, reaching $425,125. In Montreal, the province’s largest market, average prices climbed 11% to $665,981, highlighting sustained demand and strong buyer activity.
Although Alberta and Quebec emerged as key players in the sales market, other regions are beginning to exhibit signs of cooling. In Greater Vancouver, average prices dipped slightly by 0.6%, settling at $1,278,869 from $1,286,536 a year earlier. Similarly, Victoria saw a modest 2.7% decline, dropping prices from $968,634 to $942,725. In Thunder Bay, average prices fell 1.9%, reaching $340,219 compared to $346,677 in November 2023. These modest declines reflect adjustments in buyer demand and market stabilization in select regions.
Nationally, the average home price reached $694,411, marking a 7.4% year-over-year increase and reinforcing overall market confidence heading into 2025. With conditions tightening and affordability improving in many regions, buyers and sellers are entering a more active and balanced market.
Fraser Valley and Greater Toronto Lead New Listings Growth
Fraser Valley emerged as Canada’s standout market for new listings growth in November 2024, with an impressive 15% year-over-year increase. New listings rose from 1,798 in November 2023 to 2,067 in November 2024. This increase comes when inventory remains tight nationally, positioning Fraser Valley as a key area for buyers looking for fresh opportunities. Similarly, Greater Toronto saw a 10.3% increase in new listings to 11,592. This uptick reflects a more balanced market in Canada’s largest urban center, providing buyers with additional options and greater flexibility heading into winter.
While these regions showed robust growth, Kitchener-Waterloo and Gatineau CMA also posted strong gains. Kitchener-Waterloo saw new listings jump by 9.2% year-over-year, signaling continued activity in one of Ontario’s mid-sized markets. Meanwhile, Gatineau CMA recorded a 9.5% rise, reflecting healthy seller activity in Quebec’s competitive housing landscape.
New Listings Plummet in Niagara Region and Victoria
Among Canada’s major markets, the Niagara Region experienced the most significant decline in new listings, falling 26.6% year-over-year from 1,693 in November 2023 to 1,243 in November 2024. This drop highlights a tightening market where fewer properties are being brought to market, potentially creating increased competition among buyers. Similarly, Victoria saw a notable 14.8% decline, with new listings dropping from 804 to 685, reflecting a slowdown in seller activity in one of Canada’s key West Coast markets. Ottawa also posted a decline, with new listings decreasing 8.9% year-over-year, falling from 1,252 to 1,141, indicating a more cautious approach among sellers in the nation’s capital.
As buyers look for opportunities, the growth in new listings across some key markets suggests shifting momentum and fresh inventory heading into 2025.
Market conditions vary from region to region however, so if you’re planning to enter the winter or spring market, it’s important to speak with a local real estate agent to learn about conditions in your specific area. If you’re ready to talk about your 2025 real estate goals, give us a call today!
