Canadian Real Estate Prices Hit Multi-Month High, Demand Weakest Since 2009

Canada's housing market is showing mixed signals. In March, the average home price edged up to $712,200, marking a seven-month high. However, this modest increase of just $300 from the previous month comes amid the weakest buyer demand since 2009.

Despite the slight uptick in prices, the annual growth rate has declined by 2.1%, the lowest since September 2024. This suggests that potential buyers are hesitant, possibly due to affordability concerns or expectations of further price drops.

Home sales in March totaled 39,202 units, a 9.3% increase from the previous year. However, this figure still represents the lowest sales volume since 2009, a time when Canada's population was significantly smaller.

At the same time, new listings surged by 13.1% to 86,953 homes, leading to a sales-to-new-listings ratio of 45.1%. This ratio, the lowest since 2009, indicates a market leaning towards buyers, with more homes available than there are buyers.

The Canadian Real Estate Association (CREA) made early revisions to its Home Price Index, adjusting February's reported price from $713,700 to a lower figure. Such unexpected changes have raised concerns about the reliability of the index among some economists.

In summary, while home prices have seen a slight increase, the significant drop in demand and rising inventory suggest that the Canadian housing market may face continued challenges ahead.