The numbers heralded a shift toward a more balanced market, with home prices remaining stable and sales down marginally. A stable housing market will also hopefully contribute to a strong and stable economy, although more properties are needed to cope with rising demand. Demand for Canada has seen a surge in recent years, partly down to immigration.
The Canadian Real Estate Association (CREA) reported Wednesday that the National Composite Home Price Index (HPI) remained unchanged from March to April, signalling a third consecutive month of price stability. On a year-over-year basis, the HPI dipped 0.9 per cent, the first decline since last July.
Meanwhile, the number of newly listed homes increased by 2.8 per cent month-over-month, which led to a 6.5 per cent rise in the overall number of properties on the market — levels not seen since before the COVID-19 pandemic. Despite this increase in inventory, sales activity dipped by 1.7 per cent between March and April 2024, slightly below the 10-year average.
CREA’s newly appointed chair of its 2024-2025 board of directors, James Mabey, said buyers currently hold a rare advantage, a scenario unseen for quite some time, and that those who can afford to should take advantage.
Mabey went on to point out that many people still cannot enter the housing market because prices are too high. However, for those who can afford to buy, this spring has seen the first buyer’s market for several years. Mabey also went on to say that it’s difficult to see the current situation lasting for long considering the high demand for property in the country.
While new listings surged across most regions, London and St. Thomas bucked the trend with a 9.4 per cent decline, joined by Saskatoon at 3.1 per cent and the Niagara Region at 2.5 per cent. Meanwhile, home prices in Victoria dipped by 2.2 per cent, Newfoundland and Labrador by 1.3 per cent, and by 0.7 per cent in the Fraser Valley.
As April ended, the national sales-to-new-listings ratio eased to 53.4 per cent, a hair below the long-term average of 55 per cent. This range, typically found between 45 per cent and 65 per cent, signifies a balanced housing market, while upward or downward deviations suggest either a seller’s or buyer’s market respectively.
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