Home sales, prices, and listings recorded a decline in November compared to the previous month, October, as many potential buyers and sellers continued to wait for signs of falling interest rates, according to a report released today by the Canadian Real Estate Association (CREA / ACI).

Compared to November of last year, sales in last November fell by 0.9%, and decreased by the same margin on a seasonally adjusted basis compared to last October.

There was also a 1.8% decrease in the number of homes listed for sale in new listings in November compared to the previous month. This marks a second consecutive month of decline following a monthly drop of 2.2% in October, the first of its kind since last March.

The decline in new listings also shows that sellers are increasingly waiting until next year, despite a surprising number of them entering the market early in the fall, according to an analysis by the Chief Economist at the Canadian Real Estate Association, Shaun Cathcart.

"And since they did not receive the offers they were willing to accept, it seems that many of them have given up and are waiting until next year," Cathcart added in a statement.

In November, the average price of homes across various categories decreased by 0.3% from its level in the previous month, or by 1.1% according to the MLS composite benchmark price index, while this index rose by 0.6% compared to November 2022, reaching $735,500.

The actual national average price of homes across various categories sold in November was $646,134, an increase of 2% from its level in November 2022.

Cathcart also believes that it may be wise for homeowners to wait before listing their properties for sale.

"This is likely a good decision, given that recent expectations for interest rate cuts suggest that the spring market may be somewhat more active than we thought," Cathcart added.

It is noted that the Bank of Canada announced on December 6 that it is keeping its key interest rate at its current level of 5% for the third consecutive time, but did not rule out raising interest rates in the future.