The number of homes sold in September dipped by 1.7 per cent compared to the previous month, breaking a five-month streak of increased sales activity, according to new data from the Canadian Real Estate Association (CREA).
There were 39,938 residential properties sold across the country last month, down from 40,615 sales in August.
Home Prices Slightly Decline
The benchmark home price ticked down 0.1 per cent month over month and fell 3.4 per cent year over year. The national average price of a home was $676,154 for the month.
Interest Rate Uncertainty Could Affect Future Sales
CREA senior economist Shaun Cathcart said the expectation for a rate cut wasn’t clear until the “eleventh hour,” which could mean it will have more of an impact on October’s sales figures. If the central bank chooses to cut rates further in the coming months, he says that will also have a big impact down the road.
Regional Sales Trends
Regionally, the Greater Toronto Area and Winnipeg saw increased sales, but dips in Calgary, Edmonton, Ottawa, Montreal, and the Vancouver area were enough to pull the national average down.
Before now, city centers, including Toronto, had been lagging in sales activity, whereas homes in smaller cities and rural areas had been selling at times for record prices. This September change indicates that those regional trends might be slowing down.
Sales Still Up Compared to Previous Years
Cathcart noted that the drop isn’t drastic in the grand scheme. Sales are still 5.2 per cent higher than September 2024, marking the highest number of sales for the month since 2021.
“Things don't always go up in a straight line forever. So I'd be more inclined to call this a bump in the road at this point,” Cathcart said.
Housing Supply Challenges Remain
In the long run, Canada still faces challenges with housing supply. The supply of new homes dropped 0.8 per cent in September compared to the previous month, while there are 4.4 months of inventory available in total (the long-term average for that benchmark is five months).
Cathcart emphasized the need for continued housing development to meet demand and prevent rapid price increases.
“Our message to policymakers in Ottawa is get building sooner than later, because this shortage-of-supply situation hasn't gone anywhere.
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