After rising for the past five months, the Teranet-National Bank Composite Index^™ started to fall again in October, as property prices across the country declined by 0.4% over the month in a context where the resale market is losing momentum. Indeed, the rise in interest rates in recent months, which exacerbates affordability problems, combined with a less buoyant job market, have contributed to the slowdown in the real estate market. Indeed, market conditions have eased across the country, so that the number of months of inventory rose to 4.1 in October, a level similar to that prevailing before the pandemic, but still lower for the moment than the historical norm. What’s more, the weakness of prices in October was widespread across the country, with 58% of the 31 cities covered experiencing a sharper fall or weaker growth than the previous month. In the months ahead, prices are likely to continue to decline, while interest rates remain high and the economic context will be less favourable, representing headwinds for the sector despite the support of historical demographic growth.

November 2023