Home sales, prices rise in Canada as more households test market

HOME sales in Canada edged higher in September after another interest rate cut by the Bank of Canada brought down mortgage rates. 

Sales of existing homes rose 1.9 per cent from a month earlier, according to data released on Tuesday by the Canadian Real Estate Association. The benchmark home price was up 0.1 per cent to C$718,200 (S$680,453). 

Housing activity in Canada has been sluggish since 2022, when borrowing costs moved sharply higher in response to a burst of inflation pressure. But with rates now declining – and the Bank of Canada indicating they will drop further in the months ahead – there are early signs the market is thawing. 

And there are lot more properties for sale than a year ago. The main platform used by Canadian real estate agents (CREA) had 185,427 listings as of the end of September. That’s up nearly 17 per cent from a year earlier, though it’s still a little lower than the long-term average, CREA said. 

The Bank of Canada began lowering its benchmark interest rate in June, cut it again in early September, and is expected to cut again next week. Traders boosted their bets on Tuesday that the central bank will lower its policy rate by 50 basis points on Oct 23 – which will give immediate relief to homeowners with variable-rate mortgages. 

In greater Vancouver, the benchmark price was C$1.18 million, down 0.5 per cent from a month earlier. In greater Toronto, it was C$1.08 million, also down 0.5 per cent, the real estate association said. BLOOMBERG