Following another Bank of Canada rate hold announcement, there’s promising signs that the real estate market will continue to bounce back this spring, according to the Canadian Real Estate Association (CREA).
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In March, the national average home price reached $698,530, a 2% increase from the previous year, with average home prices increasing in major markets nationwide. Additionally, there was a 10% increase in new listings compared to last year.
Overall Canada is in a balanced market, with the national sales-to-new listings ratio tightening to 57.4%, a bit higher than the typical 55% average. A balanced market means sellers can sell their home for a fair price, while buyers have the luxury of more time to make decisions.
Looking at these statistics, it’s important to highlight the noticeable slowdown during the Easter long weekend, leading to a 1.6% decrease in newly listed homes compared to the previous month.
“We’ll have to wait for the April data to really understand how buyers are responding to all these new properties for sale, but if you look at last spring as a guide and add to that record population growth in the last year and a central bank that is far more likely to cut this summer than raise like it did last year, it could get interesting,” said Shaun Cathcart, CREA’s Senior Economist. “Will the story be high interest rates keeping a lot of people on the sidelines this year, or the much expected and anticipated first rate cuts enticing a lot of people back into the market? Probably a bit of both.”
Real Estate Prices are Rising in Canada’s Major Markets
Notably, Greater Vancouver experienced a 1.14% month-over-month increase in price, with the average home price now at the $1.2 million mark. As the most expensive market in the country for average home prices, this puts Vancouver at a whopping one million dollars more than the most budget-friendly market, Saint John, highlighting the difference between affordability across the country.
Saint John saw the most significant increase, jumping up by 3.5% to hit $288,300, while still holding the title of Canada’s most affordable average home price in major markets.
Meanwhile, Edmonton came next with a 2.8% increase, reaching an average price of $385,900, while London– St Thomas experienced a 2.6% increase, now at $602,700.
March Sales Leaders: Spotlight on Market Activity
Housing markets under the average national price of a home in Canada continue to see increased activity compared to more expensive markets. Edmonton saw a remarkable 34% in sales compared to last year. Additionally, three other significant markets experienced notable increases: Halifax-Dartmouth saw a 21.4% increase in sales and Calgary saw a 10.3 % rise.
Among the markets experiencing heightened sales, Calgary stands out as the priciest. The average home price in Calgary is $580,400, showing a 2.20% increase from last year. However, it’s still 17% lower than the national average.
Canada’s Updated Real Estate Outlook for 2024
CREA has revised its projections for the year, painting a promising picture for the Canadian real estate market. They now predict that 492,083 homes will be sold, a 10.5% increase from last year. Additionally, the average national home price is expected to rise by 4.9% annually to reach $710,468 by the end of 2024.