Canada’s real estate market is heating up as national home sales jump by 26% last month. With prices inching higher and competition expected to intensify this spring, here’s what you need to know about this market surge—and how it could impact your next move.

Key Highlights:

• 26% increase in home sales compared to last year, marking a strong recovery in Canada’s housing market.
• National average home price rose 4.7% year-over-year, showing steady growth.
• Buyers are back as affordability challenges persist, with mortgage rates playing a key role.
• Spring season forecast: Expect more competition and higher demand for listings.

What’s Driving the Sales Boom?

The Canadian Real Estate Association (CREA) reported a significant uptick in home sales in November, continuing the positive trend seen since June. Over 37,855 homes were sold across Canada, pointing to increasing buyer confidence despite ongoing affordability challenges.

Why the jump?

1. Lower inventory: With newly listed properties down 0.5% month-over-month, demand is outpacing supply.
2. Mortgage strategies: Some buyers are opting to secure homes now to avoid higher costs next year.
3. Improving sentiment: Experts note stronger buyer confidence as the market stabilizes.

Buyers: Is Now the Right Time to Act?

If you’re considering buying a home, experts say timing could matter more than ever.

• Some buyers are moving off the sidelines now to avoid paying more next year.
• “Consider it an opportunity cost,” says NerdWallet Canada spokesperson Clay Jarvis, referring to the current mortgage tradeoff.

Tip: Start preparing now if you’re looking to buy this spring, as competition is expected to ramp up.

Sellers: What Does This Mean for You?

For sellers, this market shift offers a chance to capitalize on growing demand.

• With home prices rising and inventory still low, you could attract motivated buyers ready to act quickly.
• Spring listings are expected to see intense competition—strategic timing could boost your sale.

What to Expect in Spring 2024

The upcoming spring market will likely bring:

• Higher demand as buyers re-enter the market.
• Potential price increases with increased competition.
• Continued inventory challenges, keeping supply tight.

According to CREA, while affordability remains a hurdle, buyers are showing stronger determination to purchase homes—a trend expected to gain momentum.

Final Takeaway

Canada’s real estate market is showing clear signs of recovery, with a 26% jump in sales and rising prices. Whether you’re buying, selling, or investing, staying ahead of the market trends is crucial.

Ready to make your move? Follow our blog for more real estate updates, or contact us today to discuss your next steps in this competitive market.