“New supply bounced way up in February, which is similar to what we saw play out in 2020 and again in 2021,” said CREA senior economist Shaun Cathcart in the release. “The real question is what comes next? In the short term, expect at least one more month of stronger sales as the majority of those new listings came onto the market near the end of the month so many of the associated sales likely won’t happen until early March.
CREA’s non-seasonally adjusted benchmark House Price Index rose by a record 29.2 per cent year-over-year in February. However, the market could be at a turning point for prices. “Combined with higher interest rates and higher prices, we could be at a turning point where price growth begins to slow down and inventories finally begin to recover after seven years of declines,” Cathcart said. “Still, in order to turn this market back towards balance long-term, building more new homes across the spectrum remains the key.”
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