Despite an increase in new listings, home sales in Canada dipped by 1.7% from March to April, according to the Canadian Real Estate Association (CREA). The average home price was $703,446, down 1.8% from April 2023, and sales were up 10.1% from a year ago. The market dynamics of this spring differ significantly from those of the previous year. In April 2023, there was a surge in buyers amidst historically low listings, whereas this spring sees a healthier balance between supply and demand, but less enthusiasm from buyers. Experts suggest now is a good time to buy, with some buyers cautiously awaiting potential interest rate drops.
The inventory of homes on the market increased by 6.5%, reaching its highest level since before the COVID-19 pandemic. The national housing market currently favours buyers, with relatively balanced conditions offering negotiation opportunities. National housing inventory stands at 4.2 months, slightly higher than pre-pandemic levels. Meanwhile, Canada Mortgage and Housing Corp. reported a 1% drop in housing starts compared to March, with urban centers showing a flat trend, partly influenced by challenging borrowing conditions from the previous year.
