The Canadian housing market is experiencing a surge in new listings but a lack of demand from buyers, creating a balanced market situation, according to the Canadian Real Estate Association (CREA). Home sales dropped by 1.7% between March and April, while the number of newly listed homes increased by 2.8% month-to-month. This led to a 6.5% increase in the overall number of homes on the market, reaching levels not seen since before the COVID-19 pandemic began. The sales-to-new listings ratio eased to 53.4%, just below the long-term average of 55%.
CREA chair James Mabey stated that the current increase in listings has resulted in the most balanced market conditions at the national level since before the pandemic. Despite mortgage rates remaining high and no interest rate cuts from the Bank of Canada, many buyers are still unable to enter the market. However, for those who can, they now have the opportunity to shop around, take their time, and negotiate on prices. Home prices have remained steady, with CREA’s Home Price Index showing little change for the third consecutive month. The national average home price in April was $703,446, a 1.8% decrease from the previous year.
The housing market is experiencing some exceptions to the overall trend, with Calgary, Edmonton, and Saskatoon reporting prices steadily increasing since last year. These markets are seeing a different trajectory compared to the national average. The increase in listings and decrease in sales have resulted in a market that offers buyers more options and bargaining power. With interest rates still high, many potential buyers are on the sidelines, waiting for more favorable conditions. The current market conditions provide a unique opportunity for those who are ready to make a purchase.
The surge in new listings and decrease in sales have led to the highest level of homes on the market since before the pandemic began. This shift has created a more balanced market that allows buyers more flexibility and negotiating power. While overall home prices have remained stable, some markets such as Calgary, Edmonton, and Saskatoon have seen prices steadily increasing. The current market conditions present a unique opportunity for buyers who are ready to make a purchase and take advantage of the options available to them.
Despite the increase in listings and decrease in sales, the Canadian housing market is experiencing a period of balance and stability. Buyers who are able to navigate the market at this time can take advantage of the increased options and bargaining power available to them. While mortgage rates remain high, buyers who are ready to make a purchase can benefit from the current market conditions. The exceptions in markets such as Calgary, Edmonton, and Saskatoon highlight the diversity of trends within the Canadian housing market. Overall, the current situation provides a unique opportunity for buyers to enter the market with more control over their purchasing decisions.
