The Canadian Real Estate Association (CREA) reported that home sales declined in February compared to the previous month, despite price increases in some cities. The association noted that the national benchmark price fell by 4.8% to $661,100, a level similar to prices recorded in the spring of 2021.
According to CREA, national home sales decreased slightly in February compared to January, while the benchmark home price also dropped by 4.8% year-over-year. Shaun Cathcart, CREA’s Chief Economist, stated that the figures reflect the continued subdued market activity observed at the start of the year, but he expected demand to rebound strongly during the spring season.
In a related context, the number of newly listed homes declined by 3.9% compared to January, leading to a contraction in the sales-to-new listings ratio. The association added that price declines in provinces such as British Columbia, Ontario, and Alberta helped offset gains seen in other regions.
Data from the MLS Home Price Index also showed that the national benchmark home price averaged $661,100 last month, a figure close to its level in spring 2021.
Robert Hogue, Assistant Chief Economist at RBC, stated that housing markets continue to experience a slowdown, particularly in Ontario and British Columbia. Meanwhile, signs of stabilization have begun to emerge in other regions such as Alberta and Quebec. Hogue added that smaller and less crowded markets saw notable activity during the second half of last year, but this trend is currently showing signs of easing.
On the other hand, cities such as St. John’s, Regina, and Quebec City recorded noticeable increases in home prices. For example, prices in Quebec City rose by 17%, while major urban centers experienced a relative slowdown amid growing concerns about the economic outlook.
