National market is the most balanced since before the pandemic, says CREA
Canada’s housing market is experiencing a notable trend as active listings continue to rise, reaching their highest level in over five years this April. This increase points to a more balanced market, with home prices holding steady and sales experiencing a slight decline.
According to the Canadian Real Estate Association (CREA), the National Composite Home Price Index (HPI) remained stable from March to April, marking the third consecutive month without significant price changes. Year-over-year, the HPI saw a 0.9 percent decrease, the first drop since last July.
In April 2024, the actual (not seasonally adjusted) national benchmark home price stood at $719,400, unchanged from the previous month but down 0.6 percent compared to April 2023.
Newly listed homes increased by 2.8 percent month-over-month, contributing to a 6.5 percent rise in overall market inventory — levels not seen since before the COVID-19 pandemic. Despite the increased supply, sales activity fell by 1.7 percent between March and April 2024, slightly below the 10-year average.
“April 2023 saw a surge of buyers re-entering a market with new listings at 20-year lows. This spring, however, we’re seeing the opposite: a healthier number of properties available but less buyer enthusiasm,” said CREA’s senior economist Shaun Cathcart.
James Mabey, the newly appointed chair of CREA’s 2024-2025 board of directors, noted that buyers currently have a rare advantage in the market.
“Mortgage rates remain high, making it challenging for many to enter the market. However, for those who can, this is the first spring in a while where they can take their time, shop around, and negotiate. It’s uncertain how long this situation will last given the demand,” Mabey said.
While most regions saw a surge in new listings, London and St. Thomas saw a 9.4 percent decline, followed by Saskatoon at 3.1 percent and the Niagara Region at 2.5 percent. Home prices fell in Victoria by 2.2 percent, in Newfoundland and Labrador by 1.3 percent, and in the Fraser Valley by 0.7 percent.
By the end of April, the national sales-to-new-listings ratio eased to 53.4 percent, just below the long-term average of 55 percent. This range, typically between 45 percent and 65 percent, indicates a balanced housing market, while deviations suggest either a seller’s or buyer’s market respectively.
