Home sales were up in January 2024

Home sales were up in January 2024 compared to January 2023. New listings were also up year-over-year, but at a lesser annual rate than sales.

More relative to current market conditions is a look at the month-to-month trending. Available property for sale has probably found its low since mid-fall 2023. Average Price, which has been declining since May 2023, has also probably found its low point since then. Transactions have started to increase.  Property has been sitting longer.  In January, property sat on the market for an average of 37 days, the most in over a year.  We expect this to adjust into a shorter period as the spring market settles in.

“We had a positive start to 2024. The Bank of Canada expects the rate of inflation to recede as we move through the year. This would support lower interest rates which would bolster home buyers' confidence to move back into the market. First-time buyers currently facing high average rents would benefit from lower mortgage rates, making the move to homeownership more affordable,” said TRREB President Jennifer Pearce.

“Once the Bank of Canada actually starts cutting its policy rate, likely in the second half of 2024, expect home sales to pick up even further. There will be more competition between buyers in 2024 as demand picks up and the supply of listings remains constrained. The end result will be upward pressure on selling prices over the next two years,” said TRREB Chief Market Analyst Jason Mercer. 

A positive picture is evolving.  Describing this moment as a ‘buying window’ may be a little strong; however, when we look back later this year, we feel it is an excellent time to purchase real estate.