Canadian Home Sales Fall 3.3% in January, Up 2.9% Year-Over-Year

In January, Canada's new-house prices declined by 0.1%, largely due to a drop in Toronto, reflecting a continued slowdown in the housing market. The Canadian Real Estate Association (CREA) reported a 3.3% decrease in home sales from December, although sales were up 2.9% compared to the previous year. This decline in sales is attributed to uncertainty regarding potential trade tensions with the United States. The average home price rose to $670,064, marking a 1.1% increase from January 2024, despite the overall market challenges. Newly listed properties increased by 11% month-over-month, the largest seasonal rise recorded since the late 1980s, indicating a significant shift in market dynamics. Additionally, the Bank of Canada's recent interest rate cuts may not sufficiently alleviate the pressure on the housing market as it navigates these uncertainties.