Canadian home sales increase in October, but market worries remain

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Canadian home sales in October were up for the first time in seven months amid a market slowdown that has seen prices plummet in major markets and interest rates rise rapidly.

National home sales edged up 1.3 per cent in October from September and the number of newly listed properties was up 2.2 per cent month-over-month, a Tuesday report from the Canadian Real Estate Association said. However, the number of transactions decreased by more than 36 per cent in October 2022 compared to October 2021.

. Currently, national home prices have fallen by 10 per cent since the peak and 15 per cent in the GTA. “Inflation is still far from being under control and we know the Bank of Canada has another 0.25 or 0.5 percentage point increase coming in December,” he said. “Employment is also holding steady but once the recession hits and people start losing their jobs it will impact the housing market, because fewer people will be in the market looking to buy,” Cross added.

To have a stabilized market, the ratio needs to reach 60 per cent, said Kavcic. In order for that to happen, a drastic uptick in sales would need to occur, which economists say won’t happen soon, especially with higher rates on the horizon and buyers and sellers alike sitting on the sidelines.

 

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Who's buying homes? I'm going to guess investors getting money from the feds at below Prime. You will own nothing and be happy

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