I hope you had a wonderful holiday season and are feeling refreshed for 2025!
The real estate market in 2024 was slow, with sales down 20.9% compared to the 10-year average.
Throughout most of the year, monthly sales figures hovered around 20% below the 10-year average, but activity started to pick up in October.
December followed a similar trend to November. While sales figures compared to the previous year show an impressive 30% increase, the bigger picture reveals they were still 14.9% below the 10-year average.
The sales-to-active listings ratio, a key indicator of supply and demand, stayed relatively unchanged across all property categories. This ratio reflects how balanced the market is: the lower the number, the weaker the demand. For prices to rise, the ratio generally needs to remain above 20% for several months. As shown in the chart below, detached home prices in December remained steady, while townhomes and apartments saw small declines of 0.3% to 0.4%.
Last month the Bank of Canada lowered their overnight rate by 0.50% and most believe they will cut another 0.25% on January 29th. This could give the market a boost by lowering variable-rate mortgages. However, the outlook for fixed-rate mortgages is less certain. Potential inflationary tariffs could drive bond yields higher, which would, in turn, push up fixed mortgage rates. With leadership changes coming in both the U.S. and Canada, the market is likely to face some turbulence in the months ahead.
Enjoy the rest of January,
And happy Lunar New Year to those who celebrate it!
Below, you’ll find the schedules for upcoming rate announcements in the U.S. and Canada.
