While national home sales dropped by 12.6% on a month-over-month basis in April, it was still the third-highest April sales figure, trailing closely behind 2021 and 2016, according to the Canadian Real Estate Association’s (CREA) latest release.
The decline in monthly activity was more apparent in the Greater Toronto Area (GTA), which is in part because of its size. Sales were down in 80% of these local markets, most notably in Mississauga and Hamilton-Burlington where sales dropped by 32.0% and 23.1% month-over-month respectively. There were some exceptions across the country including in Victoria, Montreal and Halifax-Dartmouth where sales did experience a small bump.
We Are Inching Closer to a Balanced Market Across the Country
The number of newly listed homes scaled back by 2.2% on a month-over-month basis in April. This small decline is in part due to the split between markets that saw the number of listings rise and those that saw a decrease in new listings. “For buyers, this slowdown could mean more time to consider options in the market. For sellers, it could necessitate a return to more traditional marketing strategies. Of course, there are significant regional differences, so your best bet is to contact your local REALTOR®. They have the information, guidance & negotiation skills to help you navigate this rapidly-changing market as it evolves,” said Jill Oudil, Chair of CREA.
- Read: Now is the Time to Sell: Durham Cities Currently Have the Shortest Average Property Days on Market
The sales-to-new listings ratio (SNLR) hit the lowest level since June 2020 at 66.5%. This ratio is used to determine if the market favours buyers, sellers, or is balanced. This spring, we have been inching closer to a balanced market, which usually sits around 50%. The long term average for the national sale-to-new listings ratio is 55.2%. A little over half of local markets were balanced based on the SNLR, while a little less than half remained in seller’s market territory.
Fatigued Buyers Should Remain Hopeful
At the end of April, we had 2.2 months of inventory on a national basis. Although this is still a historically low figure, it is up from the past eight months. We continue to see a rise month-over-month which is a positive sign for apprehensive or fatigued buyers.
Prices are Down from March in Some Key Markets
Many markets in Ontario saw a decline in the Aggregate Composite MLS Home Price Index. Nationally, it decreased by 0.6% month-over-month in April 2022. This is the first month-over-month decline since April 2020. The actual (not seasonally adjusted) national average home price was a little over $746,000 in April 2022. This figure is heavily influenced by sales in Greater Vancouver and the GTA, two of Canada’s largest and most expensive markets. Excluding these markets cuts $138,000 from the national average price.
Here are the Ontario markets that saw the biggest dip in home price:
Great news for buyers looking to secure a home in the Oakville-Milton area; the month-over-month MLS Home Price Index Benchmark (MLS HPI) price was down by -5.6% in the region. Although the seasonally adjusted average price remains high at $1,583,000, the market is changing and allowing more buyers to make their move.
London & St. Thomas
We’ve watched this market become more steady throughout 2022, and now the MLS HPI is down -4.0% month-over-month. This is great news for those looking to buy in this in-demand market, within commuting distance to Waterloo Region. The April 2022 MLS HPI benchmark price was at $716,800.
Another in-demand market that saw a -3.9% decrease month-over-month. The MLS HPI benchmark price was at $903,400 in Cambridge in April, marking this the second consecutive month of MLS HPI price decreases in the city.
This is the first MLS HPI benchmark price decrease that the city of Sudbury has experienced this year, now down -3.0% from the month of March. Sudbury is one of the most affordable markets in Ontario, with the March MLS HPI benchmark price being $471,200.