A surge in new listings but a lack of demand from buyers is putting the Canadian housing market in its “most balanced” position since before the COVID-19 pandemic, the national real estate organization says.
The Canadian Real Estate Association (CREA) said Wednesday that home sales fell 1.7 per cent between March and April.
Sellers, however, were coming out of the woodwork to boost the number of newly listed homes by 2.8 per cent month-to-month.
A slowdown in sales but a boost in listings led to a 6.5 per cent jump in the overall number of homes on the market, hitting the highest level since just before the COVID-19 pandemic began, CREA said. It also marked the second biggest month-over-month jump in overall properties up for sale.
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“After a long hibernation, the spring market is now officially underway,” said CREA chair James Mabey in a statement. “The increase in listings is resulting in the most balanced market conditions we’ve seen at the national level since before the pandemic.”
The sales-to-new listings ratio meanwhile eased to 53.4 per cent, just below the long-term average of 55 per cent.
Mabey noted that with mortgage rates still high and no interest rate cuts from the Bank of Canada yet, many buyers are still sidelined and unable to break into the market.
“But, for those who can, it’s the first spring market in some time where they can shop around, take their time and exercise some bargaining power,” he said.
Home prices are also holding steady, with little change in CREA’s Home Price Index for the third consecutive month.
The national average home price in April was $703,446, down 1.8 per cent from last year, CREA said.
The association highlighted Calgary, Edmonton and Saskatoon as the exceptions from the trend, with each market reporting prices steadily ticking higher since last year.
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Listings surge met few buyers in April. What that means for spring housing market
