Canadian Housing Market Shifts to Balance Surge in Listings Stable Prices and Caution Ahead
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The Canadian housing market is experiencing a notable shift, with a surge in new listings coinciding with a lack of demand from buyers, according to the Canadian Real Estate Association (CREA). This dynamic has resulted in what CREA describes as the market's "most balanced" state since before the onset of the COVID-19 pandemic. While home sales saw a slight decline of 1.7% between March and April, there was a significant uptick of 2.8% in newly listed homes during the same period. Consequently, there was a notable increase of 6.5% in the overall number of homes on the market, marking the highest level since just before the pandemic began.
James Mabey, CREA's chair, emphasized the emergence of the spring market after a prolonged period of inactivity. He noted that while mortgage rates remain high and there have been no interest rate cuts from the Bank of Canada, buyers who can afford to enter the market now have the advantage of more options and bargaining power. Despite these shifts, home prices have remained relatively stable, with little change in CREA's Home Price Index for the third consecutive month. The national average home price in April was $703,446, representing a modest decrease of 1.8% compared to the previous year.
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