Canadian Home Sales Fall 3.9% in September—Now 12% Below 10-Year Average

Up until September, Canadian home sales seemed to be settling after a period of noteworthy drops; however, that all changed last month.

Before we get into the latest housing data, let’s preface things by saying one month doesn’t make a trend.

The latest real estate data released from the Canadian Real Estate Association (CREA), shows home sales were down 3.9% in September compared to August—a noticeably larger slump month-to-month than we have seen recently.

An infographic of the Canadian housing market

“We’ve been watching that sales slowdown looking like it was coming in for a landing, and I still think that, [but] the September result does cast a little bit of doubt,” said CREA’s Senior Economist Shaun Cathcart during the most recent Housing Market Report (watch in its entirety below).

He said unlike during other slowdowns in the market, listings aren’t piling up and remain historically low.

The actual (not seasonally adjusted) number of property sales in September 2022 came in 32.2% below the same month last year and stood about 12% below the pre-pandemic 10-year average for that month.

“With unemployment at or near record lows, and most existing owners owing far less (if anything) on their properties… it looks like sellers are perfectly content to play the waiting game,” Cathcart added.

The number of newly listed homes edged back a further 0.8% on a month-over-month basis in September.

The Aggregate Composite MLS® Home Price Index edged down 1.4% on a month-over-month basis in September 2022, not a small decline historically, but smaller than in June, July and August.

The standout trend in August and September was how several Ontario markets saw monthly price declines halt or pop higher, mainly in the Greater Golden Horseshoe.

Looking across the Prairies, prices in Edmonton and Winnipeg are down a bit from their peaks, while prices are sliding sideways in Calgary, Regina, and Saskatoon.

Similarly in Quebec, prices have dipped in Montreal, but are mostly flat in Quebec City.

On the East Coast, price softness that had been confined to the Halifax-Dartmouth area appears to now be showing up in parts of New Brunswick and Newfoundland and Labrador, while prices on Prince Edward Island have remained flat

Advertisement

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s