Canadian Real Estate Update: New Listings Rise as Sales Slow in Early 2025

 

In January 2025, Canadian MLS® Systems experienced a notable increase in new home listings, up by double digits compared to December 2024. However, sales activity slowed towards the end of the month, likely due to concerns about a potential trade war with the U.S.

Although sales dropped by 3.3% month-over-month in January, most of the decline was due to a slowdown in the final week of the month. On the other hand, new listings surged by 11% compared to December, representing the largest seasonally adjusted monthly increase in new supply since the late 1980s, excluding the pandemic period.

With sales slowing and new listings rising, the national sales-to-new listings ratio dropped to 49.3%, down from the mid-50s in the last quarter of 2024. A balanced market typically has a ratio between 45% and 65%, with the long-term average around 55%.

By January’s end, about 136,000 properties were listed across Canadian MLS® Systems, a 12.7% increase from the previous year, though still below the usual 160,000 listings for this time.

At the close of January, there were 4.2 months of inventory nationwide, an increase from the high 3s in late 2024. The long-term average is five months, with a seller’s market below 3.6 months and a buyer’s market above 6.5 months.

The National Composite MLS®  has remained relatively stable over the past year, with price softness in B.C. and Ontario offset by rising prices in the Prairies, Quebec, and the East Coast.

The national average home price stood at $670,064 in January 2025, a 1.1% increase from January 2024, marking the first year-over-year rise since March 2024, though modest.