Home sales recorded over Canadian MLS Systems edged down by 0.9% from October to November 2023. It was the smallest decline since July. The actual (not seasonally adjusted) number of transactions came in just 0.9% below November 2022, as the Canadian Real Estate Association (CREA) reported.
The number of newly listed homes fell 1.8% on a month-over-month basis in November. This followed a 2.2% decline in October.
With new listings down by more than sales in November, the national sales-to-new listings ratio tightened slightly to 49.8% compared to 49.4% in October. It was the first time this measure has increased since April. The long-term average for the national sales-to-new listings ratio is 55.1%.
There were 4.2 months of inventory on a national basis at the end of November 2023, up only slightly from 4.1 months at the end of October. As such, this measure also looks to be stabilizing, and is still almost a full month below its long-term average of near five months of inventory.
The Aggregate Composite MLS Home Price Index (HPI) declined by 1.1% on a month-overmonth basis in November 2023, reflecting softer market conditions since the end of the summer. Prices often react with a slight lag, so it will be interesting to see if month-overmonth declines get smaller or at least stop getting larger in December in response to a stabilizing demand supply balance.
While price declines remain mainly an Ontario phenomenon, home prices are also now starting to soften in the Fraser Valley, Winnipeg, and Halifax. Elsewhere in Canada prices are mostly holding firm or in some cases (Alberta, Saskatchewan, New Brunswick, Price Edward Island and Newfoundland and Labrador) continuing to climb. The Aggregate Composite MLS HPI was up 0.6% on a year-over-year basis.
The actual (not seasonally adjusted) national average home price was $646,134 in November 2023, up 2% from November 2022.
