Housing market is not as grim as some forecasters are suggesting

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Forecasted declines in Canada\u0027s housing prices are unlikely to materialize. Find out more.

The national average sale price in February was down by 18.9 per cent from their peak a year earlier, according to the Canadian Real Estate Association. But a more useful indicator is its MLS Home Price Index, which controls for the size and quality differences in dwellings transacting over time and is adjusted for seasonal differences. This measure is down by 15.

The composite benchmark price is an aggregated representation of housing markets across Canada. Hidden in the national averages are the distinct local housing market dynamics. For example, Calgary’s SA benchmark price was 1.8 per cent higher in February than a year earlier. A quick look at sales volumes suggests that, like prices, the current declining rate is decelerating rather than accelerating. The sales volume in February 2023 was 40 per cent lower than the peak observed a year earlier, but seasonally adjusted sales in February were 2.3 per cent higher than a month earlier.Article content

in the spring, according to a recent survey by Royal LePage. It found that 26 per cent of those who suspended their home purchasing plans last year because of mortgage rate hikes are expected to actively search for homes in the spring. Another 36 per cent indicated they would follow through with a home purchase if there are no more

 

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