Canadian Home Sales Hold Steady Amid Regional Variances

Canadian home sales remained largely unchanged in November, reflecting a mix of regional performance across the country. While many provinces faced declining activity, the western regions showed notable gains. According to the National Bank of Canada, the overall market remains below historical norms, but a combination of easing monetary policy and a robust labour market is anticipated to bolster housing demand in the coming months.

Nationally, home sales were relatively flat from October to November, following a slight increase of 0.9% the previous month. Regionally, transactions dropped in seven of the ten provinces, specifically in Nova Scotia, Prince Edward Island, Newfoundland, New Brunswick, Quebec, Ontario, and Manitoba. Conversely, home sales saw increases in British Columbia, Alberta, and Saskatchewan.

Despite a surge in sales during the spring, the real estate market has remained stable since July, even after the Bank of Canada implemented policy rate cuts in the fall. Current sales figures remain 7.6% below their most recent peak recorded in November 2024, largely due to ongoing trade uncertainties that continue to impact the housing sector.

Economists express cautious optimism about the residential market’s future. The cumulative effect of rate cuts, alongside improvements in the labour market, is expected to support transaction levels. As the market adjusts, stakeholders are keenly watching for signs of recovery, particularly in regions that have experienced recent declines.

Overall, while November’s figures reflect a mixed landscape in Canadian home sales, the potential for recovery exists, driven by supportive economic factors and regional variations that could influence future market dynamics.