CREA reports January home sales jump 22% from year ago in largest gain since 2021

• By Brian Shaw
• Posted Monday, Mar 11, 2024 10:05 am

CREA reports January home sales jump 22% from year ago in largest gain since 2021

Home sales rose in an unseasonably warm January to mark a second month of rising activity and softening prices, the Canadian Real Estate Association said Wednesday.

January sales were up 3.7 per cent from a month earlier after seasonal adjustments, and up 22 per cent from a year ago when sales were particularly soft.

The increase added to the 8.7 per cent seasonally adjusted jump in December activity from a month earlier.

The rise in sales is helping tighten market conditions, though areas with the highest sales gains are still seeing prices trend lower, said CREA senior economist Shaun Cathcart in a press release.

“Taken together, these trends suggest a market that is starting to turn a corner but is still working through the weakness of the last two years.”

The sizable jump in January sales from a year earlier reflects how weak the market was in early 2023, when it had the worst start to almost any year in the past two decades. Sales last month were still about nine per cent below the 10-year average.

Sales gains in January from a month earlier were most notable in Ontario, which saw a seasonally adjusted 6.9 per cent gain, and B.C., where sales rose 4.5 per cent.

The aggregate benchmark price, which aims to represent price changes of a typical home, was up 0.6 per cent from a year earlier to $717,800.

However, the benchmark price fell 1.2 per cent month-over-month.

Rising activity and soft prices is mostly an Ontario and B.C. story, said TD economist Rishi Sondhi in a note.

“Our take on this dichotomy is that sellers capitulated on their asking price to move their homes, as conditions...[READ MORE]