Canadian home sales are starting to edge upwards again for the first time since February after a tough and unpredictable year for Canada’s real estate market.

As interest rates and prices rose, home sales across the country tracked well below last year’s averages. But according to the Canadian Real Estate Association, approximately 60% of local Canadian markets saw sales increase in October.

That’s a 1.3% month-over-month increase. While 1.3% isn’t much, it’s the largest increase the market has seen in eight months. But while sales increased, the average national home price decreased in October to $644,643 – down 9.9% from this time last year.

“In October, sales across the country increased for the first time since before interest rates started to rise last winter,” Jill Oudil, CREA’s chair, said. “Of course, we’ve known the demand was there, so it’s just been a matter of some playing the waiting game as borrowing costs and prices have adjusted. Moving into 2023, sellers and buyers will likely continue coming off the sidelines, but it’s a very different market compared to just one year ago.”

The largest sales increase was seen in Vancouver (6%), and the largest decrease was seen in Montreal (2.4%). Aside from these two markets, gains and declines were small across the board.

As sales increased in October, so did the number of newly listed homes.

Nationally, 2.2% more homes hit the market in October, with increases in the GTA and the BC Lower Mainland offsetting some of the slower markets in Montreal and Halifax-Dartmouth.

The increase in newly listed homes bumped the sales-to-new listings ratio back down to 51.6% from 52% in September.

National Home Sales Increase for The First Time Since February, Prices Down 10% by Cassie Apperloo | Livabl