We have just released our latest monthly housing market update entitled "Home resales rebounded further in April but picture varied considerably across Canada".
Highlights of the report:
The headline number for home resales in Canada released this morning by the Canadian Real Estate Association (CREA) suggested that activity finally picked up steam in April after unusually poor weather conditions caused a significant slowdown during the winter months. Overall, home resales rose 2.7% in Canada between March and April, the strongest monthly gain since August last year. That being said, the increase at the national level was far from generalized across local markets. Markets such as Montreal, Quebec City, Halifax and Ottawa saw further declines or flat sales in the month. It was significant advances in Vancouver and, to a lesser extent, Toronto, Winnipeg and Regina that drove national resales upward in April. In its release, CREA pointed to the fact that April resales remained below the 10-year average in more than 60% of local markets. This depicts a substantially uneven state of housing markets from coast to coast.
A bit of encouraging news in this morning’s report was the slight deceleration in home price increases. The year-over-year advance in the MLS Home Price Index (HPI) slowed to 5.0% in April from 5.2% in March—not by much but this possibly could represent a turning point. We had grown increasingly uncomfortable with the steady acceleration of prices since last summer, which we feared could eventually weigh affordability should this trend be sustained.
Also noteworthy was a 2.9% rise in new listings in Canada, with more listings finally showing up in several markets that saw only minimal increases at best in prior months such as Toronto and Vancouver. Greater availability of homes for sale in these markets will help reduce some of the pressure on prices that built up in the past several months.
Link to the full report
To view, print and download the new report, click on the following link: