Canadian Home Sales Increase 3.7% Month-Over-Month in January

On Wednesday, the Canadian Real Estate Association (CREA) reported that home sales recorded over Canadian MLS® Systems posted a 3.7% increase between December and January, building on the 7.9% month-over-month increase reported the prior month. CREA notes that while activity is now back on par with 2023’s relatively stronger months recorded over the spring and summer, it begins 2024 approximately 9% below the 10-year average.

The actual, not seasonally adjusted, number of transactions came in 22% above January 2023, the largest year-over-year gain since May 2021.

The number of newly listed homes rose 1.5% on a month-over-month basis in January, although it still remains close to the lowest level since June 2023, CREA said.

There were 3.7 months of inventory on a national basis at the end of January, down from 3.8 months at the end of December and 4.1 months at the end of November. CREA noted that the current level remains below the long-term average of 5 months of inventory.

The actual, not seasonally adjusted, national average home price was $659,395 in January, up 7.6% year-over-year.