Affordability concerns persist in Brantford and Brant County along with the rest of the country, putting pressure on the housing market as winter approaches, according to the latest report from the Canadian Real Estate Association (CREA). The month has witnessed a decrease in both national sales and average asking prices, with sales dropping by 0.9% from October and remaining 0.9% below last year's levels.
Buyers seem hesitant, with many holding off on making offers, possibly awaiting more favorable conditions in the coming year, as indicated by CREA's senior economist Shaun Cathcart. The average national selling price in the region stands at $646,134, reflecting a 1.6% decrease from October but still 2% higher than November 2022. In Ontario, prices have decreased by 1.3% from October and 5.9% from the previous year.
Regionally, the most significant month-over-month declines were observed in Prince Edward Island (-4.9%), New Brunswick (-4.5%), and Manitoba (-3.7%). However, prices continued to rise in Newfoundland and Labrador (+4.1%), B.C. (+0.2%), and Alberta (+0.1%).
The MLS Home Price Index, accounting for seasonality and property type differences, recorded a 1.1% monthly decrease but remains up by 0.6% year-over-year.
Looking ahead, industry observers anticipate ongoing pressure on prices into 2024 due to high interest rates, a traditionally slower homebuying season, and potential economic challenges. Economists from CREA highlight that elevated ownership costs are likely to deter homebuyers, particularly in areas like Ontario and B.C., where affordability is strained.
Robert Kavcic from BMO concurs with this assessment but foresees upward price pressure returning later in the year. Despite a predicted further decline in prices, Kavcic suggests that a combination of pent-up demand and easing borrowing costs could stabilize the market, assuming the economy remains relatively stable.
Housing inventory continues to rise with CREA reporting a climb in its months of inventory measure to 4.2, up from 4.1 in October and 3.7 in September. Despite a 1.8% decrease in new listings for the second consecutive month, the overall increase since April indicates that prospective sellers are waiting for more favorable conditions before listing their properties.
The housing market in Brantford and Brant County will be closely watched, with existing home sales data for December expected to be released on January 15, 2024.