Canadian Home Sales Inch Higher in December 2022

The Canadian Real Estate Association (CREA) reported on Monday (1-16-23) that home sales recorded over Canadian MLS® Systems moved 1.3% higher between November and December 2022. The actual (not seasonally adjusted) number of transactions in December 2022 came in 39.1% below the near record high in December 2021.

CREA reports that the number of newly listed homes dropped by 6.4% month-over-month in December. It was one of the lowest December new supply levels on record. As a result, on a month-over-month basis, the sales-to-new-listing ratio tightened to 54.4% compared to 50.2% reported in November. The long-term average for this measure is 55.1%.

At the end of December 2022, there was 4.2 months of inventory on a national basis. CREA says that number is close to where this measure was in the months leading up to the initial COVID-19 lockdowns, and still nearly a full month below its long-term average.

The Aggregate Composite MLS® Home Price Index (HPI) edged 1.6% lower on a month-over-month basis in December 2022, continuing the trend that started last spring. The Aggregate Composite MLS HPI now is about 13% below its peak level. The non-seasonally adjusted Composite HPI is 7.5% below its December 2021 reading.