The Canadian Real Estate Association issued new National Residential Statistics on March 18, 2024 details here.
The latest news release from the Canadian Real Estate Association (CREA) dated March 18, 2024, indicates a notable shift in the Canadian housing market as the seasonally adjusted Aggregate Composite MLS® Home Price Index (HPI) remained flat month-over-month in February 2024. This stability follows a series of five consecutive monthly declines that started in the fall of the previous year. The stabilization of prices marks a significant turn from a 1.3% decrease observed from December to January, highlighting the rarity of such swift changes in the typically steady seasonally adjusted MLS® HPI.
According to CREA, this development is only the fourth instance in the past two decades where such a sudden month-over-month change has occurred, all of which have happened in the last four years during periods when demand surged unexpectedly. CREA’s Senior Economist, Shaun Cathcart, suggests that February might be the final calm period before the 2024 housing market becomes more dynamic, driven by accumulated demand and the availability of properties for sale.
The news release also shares that national home sales decreased by 3.1% month-over-month in February, yet were 19.7% higher than in February 2023. The number of newly listed properties saw a slight increase of 1.6% from January to February. Furthermore, the actual (not seasonally adjusted) national average sale price observed a year-over-year increase of 3.5% in February 2024.
Looking ahead, the narrative around the housing market in 2024 seems poised for change, influenced by the potential for interest rate adjustments and the volume of new listings coming to market. The national sales-to-new listings ratio slightly eased to 55.6%, aligning closely with the long-term average and indicating a balanced market. The detailed statistics and insights suggest cautious optimism for the Canadian housing market as it approaches the spring season.
