US and Canadian housing markets face shifts in buyer demand

Housing markets in the United States and Canada experienced shifts in September, with buyers gaining more leverage due to changing supply and demand dynamics.

In the United States, the gap between sellers and buyers reached its widest point since 2013. An estimated 1.51 million sellers outnumbered 928,892 buyers, a 62.6 percent surplus. Redfin reported that buyer numbers fell for the fifth consecutive month to a record low, while the number of sellers rose to its highest level since March 2020. This trend was particularly pronounced in the Sun Belt, where cities like Miami, Nashville, and Houston saw significant seller surpluses. Analysts attribute this to high housing costs and economic uncertainty.

In Canada, home sales fell by 2.3 percent in September. The decline was driven by rising fixed mortgage rates and inflation fears, which have sidelined many prospective buyers. While home prices have continued to fall, the uncertainty regarding future Bank of Canada interest rate decisions has impacted market activity. New listings also saw a month-over-month decline of 1.8 percent, contributing to a tightening supply environment despite the drop in sales.