According to the Canadian Real Estate Association’s (CREA) report for December 2023, the nation’s home sales closed out on a high.

These numbers came as a bit of a surprise to CREA, given that high interest rates and seasonality predicted a slower end to the year. CREA stated on Monday that national home sales rose 8.7% from November to December 2023. Meanwhile, the actual (not seasonally adjusted) number of transactions was 3.7% above December 2022, the most significant year-over-year gain since August.

While the numbers may indicate optimism for buyers seeking to enter the market, CREA tempered expectations by pointing out it’s still too early to tell which way the wind will blow.

“While December did offer up a bit of a surprise in sales numbers to cap the year, the real test of the market’s resilience will be in the spring,” said Larry Cerqua, chairperson of CREA. “There are only a couple of months left until that gets underway. If you’re looking to buy or sell a property in 2024, you’ll want a game plan,” continued Cerqua.

“Was the December bounce in home sales the start of the expected recovery in Canadian housing markets? Probably not just yet,” said Shaun Cathcart, CREA’s senior economist. “It was more likely just some of the sellers and buyers holding onto unrealistic pricing expectations last fall finally coming together to get deals done before the end of the year. We’re still forecasting a recovery in housing demand in 2024, but we’ll have to wait a few more months to get a sense of what that ultimately looks like.”

The softening we’ve witnessed in previous months continues in parts of Ontario and out west.

Recent price decreases have mostly affected markets in Ontario, especially the Greater Golden Horseshoe and, to a lesser degree, British Columbia. Prices are either staying steady or rising in other parts of Canada, such as Alberta, New Brunswick, Newfoundland, and Labrador.

CREA Reports A Winter Warmup for The December Housing Market by Livabl