Canadian Real Estate Market Witnesses Surge in Available Properties
In Canada’s housing market, a notable trend seems to be emerging, with the volume of available listings steadily increasing. April witnessed a significant surge, marking the highest point in over five years. These figures indicate a transition towards a more balanced market, characterized by stable home prices and a slight decrease in sales activity.
According to the Canadian Real Estate Association (CREA), the National Composite Home Price Index (HPI) held steady from March to April, marking the third consecutive month of price stability. Compared to the previous year, the HPI experienced a modest 0.9% decline, marking the first decrease since July last year.”
In April 2024, the national benchmark home price in Canada stood at $719,400, showing no change from the previous month but reflecting a decrease of 0.6% compared to April 2023.
Simultaneously, the number of newly listed homes rose by 2.8% month-over-month, leading to a 6.5% increase in the overall inventory — reaching levels not witnessed since before the onset of the COVID-19 pandemic. Despite this surge in available properties, sales activity experienced a slight decline of 1.7% between March and April 2024, slightly below the 10-year average.
Shaun Cathcart, senior economist at the Canadian Real Estate Association (CREA), noted the shift in market dynamics, comparing April 2023’s buyer surge amidst record-low listings to the current spring, which offers a healthier selection of properties but less demand.
James Mabey, newly appointed chair of CREA’s 2024-2025 board of directors, highlighted a rare advantage for buyers, noting high mortgage rates and market accessibility challenges. He emphasized that for those able to enter the market, the current environment offers the opportunity to shop around, take their time, and negotiate terms. Mabey also underscored the uncertainty regarding the sustainability of this advantageous scenario amidst persistent demand.
Despite a surge in new listings across most regions, London and St. Thomas experienced a notable decline of 9.4%, followed by Saskatoon at 3.1% and the Niagara Region at 2.5%. Additionally, home prices saw declines in various areas, with Victoria experiencing a 2.2% decrease, Newfoundland and Labrador down by 1.3%, and the Fraser Valley dipping by 0.7%.
By the end of April, the national sales-to-new-listings ratio slightly eased to 53.4%, just below the long-term average of 55%. Typically falling within the range of 45% to 65%, this ratio indicates a balanced housing market. Deviations from this range suggest either a seller’s or buyer’s market respectively.
