The Canadian housing market appears to be entering a new chapter, with a significant rise in property listings offering a potential advantage to buyers.
The Canadian Real Estate Association (CREA) reports a national market moving towards a more balanced state. Here's a breakdown of the key trends:
- Stable Prices: The National Composite Home Price Index (HPI) remained unchanged for the third consecutive month, indicating price stabilization. Year-over-year, the HPI dipped slightly (0.9%), marking the first decline since July 2023.
- Increased Listings: The good news for potential buyers is a surge in new listings (2.8% monthly increase) translating to a 6.5% rise in overall available properties – the highest level since before the pandemic.
- Shifting Sales Activity: Despite the inventory increase, sales activity dipped by 1.7% compared to March 2024. This places the market slightly below the 10-year sales average.
Market Experts Weigh In
Shaun Cathcart, CREA's senior economist, observes a clear shift from April 2023. Back then, buyers re-entered a market with historically low listings. This spring, however, offers a "healthier number of properties" with less buyer urgency.
James Mabey, the newly appointed chair of CREA, highlights a rare advantage for buyers: "It's the first spring market in some time where they can shop around, take their time and exercise some bargaining power." However, Mabey acknowledges that high mortgage rates still pose a challenge for many.
Regional Variations
The surge in new listings wasn't uniform across Canada. London, St. Thomas, Saskatoon, and the Niagara Region saw listing declines. Additionally, home prices dipped in Victoria, Newfoundland and Labrador, and the Fraser Valley.
The national sales-to-new-listings ratio settling at 53.4% indicates a balanced market. This ratio typically falls between 45% and 65%, signifying neither a seller's nor a buyer's market dominance.
What Does This Mean for You?
If you're considering buying a home in Canada, these trends suggest a more favorable environment for negotiation and selection. However, affordability remains a concern due to high mortgage rates.
Considering buying a home? Contact Coldwell Banker Horizon Realty today or view listings. Our experienced real estate agents can guide you through the current market dynamics and help you find your dream home.
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