Statistics released by the Canadian Real Estate Association (CREA) show national home sales were down on a month-over-month basis in January 2023.
Home sales recorded over Canadian MLS Systems edged back down 3% between December 2022 and January 2023, giving back all of December’s small gains and rejoining the mild downward trend observed since last summer.
Gains in Hamilton-Burlington and Quebec City were more than offset by declines in Greater Vancouver, Victoria and elsewhere on Vancouver Island, Calgary, Edmonton, and Montreal.
The actual (not seasonally adjusted) number of transactions in January 2023 came in 37.1% below the second-best January ever in 2022. The January 2023 sales figure was the lowest for that month since 2009.
“The big question on everyone’s minds after last year was what will housing markets do in 2023?” said Jill Oudil, Chair of CREA. “We may have to wait another month or two to see what buyers are planning this year since new listings are currently trickling out at near-record low levels, but that should change as the weather warms. When looking for information and guidance about how to buy or sell a property, your best bet is to contact a local REALTOR®,” continued Oudil.
The number of newly listed homes picked up by 3.3% on a month-over-month basis in January, led by increases across British Columbia. That said, despite the small increase, nationally, new listings remain historically low. New supply in January 2023 hit the lowest level for that month since 2000.
With new listings up and sales down in January, sales-to-new listings eased back to 50.7%. This is roughly where it had been over the entire second half of 2022. The long-term average for this measure is 55.1%.
There were 4.3 months of inventory on a national basis at the end of January 2023. This is close to where this measure was in the months leading up to the initial COVID-19 pandemic lockdowns, and still close to a month below its long-term average of about five months.
The Aggregate Composite MLS® Home Price Index (HPI) was down 1.9% on a month-over-month basis in January 2023, continuing the trend that began last spring.
