“Canadian Home Sales Surge Unexpectedly”
Canadian home sales saw a significant increase in December as the national real estate body reported an 8.7 percent surge in the number of homes sold, putting the final month on par with “relatively stronger” spring and summer months. According to the Canadian Real Estate Association (CREA), sellers and buyers united to finalize deals before the new year, contributing to the unexpected spike in sales.
Unlikely Housing Market Rebound
Despite the unexpectedly strong December, CREA senior economist Shaun Cathcart believes that this surge is unlikely a signal of a housing market rebound. He suggests that it was probably the result of sellers and buyers with unrealistic pricing expectations finally coming together to close deals before the year ended. He cautioned that the true trajectory of the housing market recovery will likely become clearer over the next few months.
2023 Sales and Average Home Price
For the full year of 2023, there was a total of 443,511 home sales, a decrease of 11.1 percent from the prior year. This marked the lowest annual level for national sales since 2008. Meanwhile, the national average home price closed at $657,145, representing a 5.1 percent increase from December 2022. CREA noted that price declines are mainly concentrated in Ontario’s Greater Golden Horseshoe region and certain markets in British Columbia, while prices are holding firm or rising in other provinces such as Alberta, New Brunswick, and Newfoundland and Labrador.
Conclusion: An Interesting Start to 2024
The unexpected surge in Canadian home sales in December signals an intriguing start to 2024. While this could be indicative of a housing market rebound, as some analysts suggest, caution should be exercised in drawing too many conclusions. The dynamics of the housing market are complex and contain multiple factors, making it essential to closely monitor trends over the coming months.”
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