Housing market update: November 2023

Our latest reading of the housing market shows a marginal increase in home prices, declining sales, and signs of cooling in the rental market amid high interest rates and fluctuating construction starts.

• The Canadian Real Estate Association (CREA) reports the national average home price in September was $655,507, up less than 1% from last month and 2.5% year over year.

• CREA also reports a 1.9% drop in month-over-month home sales in September, marking the third month in a row of decline.

• Larry Cerqua, Chair of CREA, believes that, "...until there’s more evidence that interest rates are indeed finally at the top... the market will likely remain on the slower side until next year."

• Total monthly housing starts increased 3.9% from 244,511 in August to 254,006 units in September, according to the Canada Mortgage and Housing Corporation.

• Meanwhile, rental construction has hit a two-year low in the Greater Toronto Area. Will the rental tax rebate introduced in September be enough to jump-start the industry?

• Rentals.ca puts the average national asking rent at a new record high of $2,149, up 1.5% from August to September. That is an 11.1% increase year over year, the highest rate seen in nine months.

• Ontario’s fastest-growing rental markets for one-bed apartments over the last year include Oakville (16.6% growth year over year), Brampton (18.6%) and Markham (27.5%).

• However, rent growth in Toronto slowed from 8.7% to 2.3% – the slowest annual rate of increase in two years. Could this deceleration be a sign of a cool-off in Ontario’s priciest market? Giacomo Ladas, Communications Manager at Rentals.ca, seems to think so.

More rental market headlines

Canada targets Airbnb, others to ease rental shortage – Reuters

Ontario’s growth making the multi-family investment market more attractive – RE/MAX

$950 for an apartment? Ontario man is now just one of the latest scam victims – CBC