Canadian home prices have shown stability as the spring market approaches, following five consecutive decreases. The Bank of Canada has announced its decision to maintain the overnight lending rate at 5% for the second time this year until at least April 9. This announcement may instill optimism in buyers and sellers taking the “wait and see” approach, given the indications of a potentially stronger spring market.
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“After two years of mostly quiet resale housing activity there’s a feeling that things are about to pick up,” said Larry Cerqua, Chair of the Canadian Real Estate Association (CREA). “At this point, it’s hard to know whether buyers are going to wait for a signal from the Bank of Canada or whether they’re just waiting for the spring listings to hit the market. Either way, neither of those are likely too far off.”
Home Prices Steady as the Market Gears Up for Spring
Although Canadian home sales dipped by 3.1% compared to the previous month, they saw a 3.5% increase compared to last year. The national sales-to-listings ratio stands at 55.6%, indicating a balanced market.
According to CREA, prices remained unchanged from January to February, a rarity in itself. Over the past two decades, only three other significant sudden improvements or increases in the month-over-month percentage change have occurred.
Meanwhile, the number of transactions increased by 19.7% compared to February 2023, while the national average sale price rose by 3.5% year-over-year.
The national average home price was $685,809 last month, marking a 3.5% increase from February 2023 and a modest 1.8% increase month-over-month.
Canadians Continue to Invest in Affordable Markets
Despite the Bank of Canada’s higher interest rates over the past few months, Canadians are still keen to invest in markets that provide considerable savings and affordability compared to the national average price.
The largest increase in sales occurred in New Brunswick, with residential sales increasing by a staggering 15.3% month-over-month. The average home price is now $303,271 in the capital city of Saint John, marking a year-over-year increase of 21.4%.
Quebec experienced the highest sales growth across the country, with a 24% month-over-month a 33% year-over-year increase. Several markets within the province, including Gatineau, Sherbrooke, Saguenay, and Montreal, witnessed over 40% month-over-month increases in new listings.
The province also led in terms of new listings, accounting for 29% of the total, with the average home price in Quebec now reaching $502,141. Trois Rivières saw the most significant price hike within the province, with a 24% increase in the average price year over year to $368,291.
If you’re gearing up to enter the spring market, whether as a buyer, seller, or both, it’s crucial to consult a local realtor to understand the specific market conditions in your area. Feel free to give us a call today to speak with a qualified agent!
