With Labour Day in the rearview mirror, the fall home buying season kicks into gear, with online real estate portal, Zoocasa, expecting a record-breaking inventory of homes available, making for the most buyer-friendly markets in years. “Knowing that more choices mean better chances to negotiate...helps keep prices in check,” said the Zoocasa report released on the weekend. Listings increased over the summer in the country’s largest markets. On a year-over-year basis, listings in Toronto in July 2024 increased 18.5% from July 2023 (the most recent figures available); in Mississauga the year-over-year increase was 54.1%, which according to Cornerstone Real Estate, the city's local real estate board, “active listings haven't been this high in July in a decade.” In Metro Vancouver, listings increased by 39.1% and, as was the case in Mississauga, a record-breaking number. The Calgary Real Estate Board (CREB) reported, with 2,380 sales and 3,604 new listings in July, the sales-to-new listings ratio dropped to 66%, resulting in a significant increase in inventory, says Zoocasa, adding CREB reports inventory increased to 4,158 homes, the first time in nearly two years that inventory has exceeded 4,000 units. Most of the inventory growth in Calgary was in homes priced above $600,000, which helped alleviate the extreme sellers' market conditions in the city experienced during the spring, however it was balanced by a higher demand for homes under this amount, says Zoocasa. The Greater Edmonton Area real estate market saw a 13.2% increase in new listings, year-over-year, in July, while recording a 27.1% increase in sales during the same time period. Zoocasa reports Saskatchewan had a modest 2.1% year-over-year increase in new listings, rising from 2,394 to 2,444 in July 2024. The slight increase, along with declines in other months, may reflect a market beginning to slow, with fewer transactions occurring. In contrast, Manitoba saw new listings decreasing by 1.5% year-over-year in July 2024. The declines in June and May also suggest a cooling market, with less seller activity driven by softer buyer demand. Home prices remain a top priority for buyers, says Zoocasa, which surveyed 1,100 readers to assess their real estate intentions following the Bank of Canada’s rate cut in June. Survey respondents said home prices were a challenge for potential buyers, with 58% saying the purchase price as the most crucial factor in determining a home's affordability. While interest rates play a role in decision-making, they are not the sole influence for all homebuyers, says Zoocasa. Of the respondents, 15.1% said they are holding out for one more rate cut, with 31.6% of respondents indicating that they are waiting for substantial rate cuts before entering the market this year. Both groups are likely to get their wish, as the Bank of Canada is expected to drop its rate by .25% on September 4, with additional cuts in October and December. “With prices now dropping and price concerns taking centre stage, the increased supply in most major markets makes this fall an ideal time for buyers to step off the sidelines and re-enter the buying and selling process,” says Zoocasa.
