August 15: In July 2024, Canada’s housing market saw a slight slowdown, following early signs of recovery in June after the Bank of Canada’s first interest rate cut since 2020.
Home sales across Canadian MLS® Systems dipped by 0.7% compared to the previous month, reversing some of June’s gains after the initial rate cut.
With another rate cut announced on July 24, this marked two consecutive reductions. The market now anticipates further rate cuts throughout the rest of the year. This, coupled with strong demand, suggests a strong potential for renewed housing activity heading into 2025.
Key Points:
- National home sales decreased by 0.7% from June to July.
- Actual sales activity in July was 4.8% higher than in July 2023.
- Newly listed properties increased slightly by 0.9% month-over-month.
- The MLS® Home Price Index rose by 0.2% from June to July, though it was down 3.9% compared to last year.
- The national average sale price in July was nearly unchanged (-0.2%) year-over-year.
- Sales activity varied across major cities, with declines in Calgary and the Greater Toronto Area balanced by gains in Edmonton and Hamilton-Burlington.
By the end of July 2024, there were around 183,450 properties listed for sale on Canadian MLS® Systems, a 22.7% increase from the previous year but still below historical averages.
With new listings slightly up and sales slightly down, the national sales-to-new listings ratio eased to 52.7% in July, down from 53.5% in June. This ratio suggests the market remains balanced, as it typically hovers between 45% and 65%.
Although July’s housing data doesn’t show it, conditions are shaping up for a more active market. Many areas now offer more choices for buyers than in recent years, but this may not last long. For those looking to enter the market before activity picks up, it might be a good time to connect with a REALTOR®.
As of the end of July, the national inventory remained at 4.2 months, consistent with June. The MLS® Home Price Index saw a modest 0.2% increase from June to July, the second and largest rise in the past year.
