Housing prices are on the rise again after a decline since May, following the Bank of Canada's fourth interest rate cut.
BoC Governor Tiff Macklem says potential homebuyers are still hesitant as prices are still increasing, just at a slower pace. However, he believes they will come around.
With rent growth sluggish and fewer newcomers expected over the next few years, it seems the fall in inflation will hit the rental market harder than the sales market.
- The Canadian Real Estate Association (CREA) reports an average national home price of $669,630 in September – up 3.2% month over month and 2.2% year over year.
- CREA also reports a 1.9% increase in month-over-month home sales in September.
- Ontario continues to have among the highest average home prices in the country (second only to British Columbia), at $851,478 – 4.1% higher than last month’s average.
- Despite higher prices, Ontario's sales-to-new-listings ratio of 34% in September sets it apart as the only buyer’s market in the country. Quebec and Newfoundland currently have balanced markets, and the remaining provinces are experiencing seller’s market conditions.
- Meanwhile, the average national asking rent increased just $6 from August to $2,193 in September – up 2.1% from a year ago, – the smallest year-over-year increase since October 2021, according to Rentals.ca.
- Rentals.ca and other housing industry experts believe the slowdown in rental growth is largely due to falling numbers of non-permanent residents, reducing demand for rented homes.
- The Canada Mortgage and Housing Corporation (CMHC) reports a 1.3% decrease in nationwide housing starts, from 246,972 units in August to 243,759 in September.
More rental market headlines
Ontario won't hit 1.5 million homes goal, housing starts shrink – CBC
Over 50% of screened rental applications fraudulent – Storeys
The tiny Ontario town selling properties for $10 a pop – Maclean’s
