Canadian Home Sales Surge, Creating Tightest Market in a Year

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Demand is once again returning at a scale that is outpacing supply, according to new data from CREA. CREA_ACI | realestate realestatenews housingmarket homesales

Although the actual number of sales came in 19.5% below April 2022 levels, the decline was “markedly smaller” than those seen over the past year.“Over the last few months, there have been signs that housing markets were going to heat back up this year, so it wasn’t a surprise to see things take off after the Easter weekend, which often serves as the opener to the spring market,” said CREA Chair Larry Cerqua.

The number of newly listed homes increased 1.6% on a monthly basis in April, but supply remains at a 20-year low. With sales overshadowing new listings, the sales-to-new-listings ratio jumped to 70.2%, the tightest market since February 2022, and well above the long-term average of 55.1%. The actual national average home price stood at $716K in April, a 3.9% annual decline, but an increase of $103,500 from January 2023. The gain was due to “outsized” sales rebounds in the Greater Toronto Area and BC’s Lower Mainland — excluding the GTA and Greater Vancouver from the calculation cuts more than $144K from the national average price.

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