The real estate market begins to recover: national increase in sales in January

The Real Estate Market Begins to Recover: National Increase in Sales in January

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National home sales saw a significant jump on an annual basis in January, and both the benchmark and average sales price were also up, encouraging signs that a resurgence in estate market could be underway, according to the industry group representing Canadian real estate agents.

A recovery in the Canadian real estate market?

In January, the Canadian real estate market showed signs of revival with a 22% increase in sales compared to the previous year, marking the most substantial increase since May 2021. This positive dynamic is supported by an increase of 0,6 .717% of the benchmark price at $800 year-over-year, despite a slight decline of 1,2% month-over-month. The national average sales price increased by 7,6% to reach $659 in January 395.

Tight market conditions

The increase in sales comes with renewed competition among buyers, although in some regions where sales have increased the most in the last two months, prices continue to trend downward. This suggests a market that is starting to turn the corner but still has to overcome the weakness of the past two years. The markets that have seen their prices fall are mainly in Ontario, particularly in the Greater Golden Horseshoe region, with a few exceptions in British Columbia. Elsewhere in Canada, prices remain mostly stable or are increasing, such as in Alberta and Newfoundland and Labrador.

Cautious optimism

Despite these better than expected results in January, Desjardins economist Marc Desormeaux emphasizes that it is "too early to assume that a return to effervescent market conditions is imminent across the country." He warns of the full effects of rate hikes already made that could weaken housing demand in the coming months. Nonetheless, Desormeaux believes the Bank of Canada will begin cutting rates in the second quarter of the year, bringing some relief to mortgage holders.

For those interested in the mortgage market, it is recommended to follow Robert McLister's new weekly column in the Financial Post for the latest trends and details on financing opportunities not to be missed.

Conclusion

The Canadian real estate market is showing signs of recovery after a period of slowdown, with a notable increase in sales and average prices in January. However, this recovery remains fragile and subject to future economic fluctuations, particularly with regard to interest rates. The coming months will be crucial to confirm whether this positive trend will continue.

Credits

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The Real Estate Market Begins to Recover: National Increase in Sales in January

Virginie Majaux

“Virginie Mazaux” is a fictional character created by the Yourtopia.fr team, symbolizing a blog and social network enthusiast born in 1992 in Bordeaux. This character, imagined to represent a connected and creative generation, was designed to explore and write about various passions in the digital world. Although "Virginia" is not a real person, articles published under this name reflect the collaborative work of our editorial team, who share a common interest in communication, digital innovation and social trends. “Virginie”, as a creation of Yourtopia.fr, brings a unique and engaging perspective on the latest developments in the field of social media and blogging, illustrating the journey of a fictional blogger from her beginnings to the creation of his own blog and his collaboration with Yourtopia.fr.