Posthaste: Why a surge in housing inventory makes autumn ‘ideal’ for buying

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In some of Canada’s hottest housing markets, inventory is growing just in time for more interest rate cuts and the fall buying season.

Data compiled by the real estate platform Zoocasa shows the real estate markets in Ontario and British Columbia have a new influx of inventory for sale.

In Ontario, new listings were up 15 per cent year-over-year in July, while new listings in Toronto were up 18.5 per cent. Mississauga and Ottawa, meanwhile, have more than 50 per cent new listings compared to a year ago.

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The trend is also evident in British Columbia, where new listings are up 12.8 per cent year-over-year. In Metro Vancouver, new listings are up 39.1 per cent and represent the most inventory in the city in more than a decade.

With the excess inventory comes a welcome sight for homebuyers: a dip in prices. The average selling price in British Columbia fell 0.49 per cent year-over-year to $962,537 in July, while Ontario prices fell 1.7 per cent to $837,685.

With another rate cut largely expected next month, it’s anticipated more buyers will emerge.

“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,” the Zoocasa report states.

An earlier Zoocasa survey found 31.6 per cent of respondents are waiting for substantial rate cuts before entering the market, while 15.1 per cent of respondents are only waiting for one more cut.

Outside B.C., Ontario

Unfortunately for buyers outside of Canada’s two hottest markets, the trends aren’t exactly the same.

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In Alberta, listings were up 10.3 per cent in July, but prices also climbed 8.25 per cent.

In Calgary, listings were still down 33 per cent compared to what’s typically expected for July, but with 4,158 new listings, this was the first time the city surpassed 4,000 listings in nearly two years.

Listings in Edmonton, meanwhile, grew 13.2 per cent, as overall sales in the month climbed 27.1 per cent compared to a year ago.

“This increase indicates that more homeowners are choosing to enter the market, possibly in response to favourable market conditions,” the report states.

Listings were considerably less abundant in Saskatchewan and Manitoba — up 2.1 per cent and down 1.5 per cent year-over-year, respectively.

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Today’s Posthaste was written by Ben Cousins, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

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