Canadian Home Sales Flatten in April Amid Market Uncertainty

Strategic Insights -

Canada's housing market has shown signs of stabilization after months of declines, with the Canadian Real Estate Association (CREA) reporting a 0.1% drop in home sales in April compared to March. This moderation in sales follows several months of declines that have plagued the market since the beginning of the year. The CREA report highlights the ongoing uncertainty surrounding the housing market, with factors such as high interest rates, tariffs, and government policies contributing to buyer caution.

Key Takeaways:

  • Home sales in Canada fell by 0.1% in April compared to March on a seasonally adjusted basis, with approximately 35,000 homes sold across the country.
  • Sales declined in Alberta and British Columbia by 3.4% and 2.3% respectively from a month earlier, but Ontario posted a 1.1% increase and Quebec sales rose by 2%.
  • Sales across the country came in 9.8% below the same month last year, following a 9.3% decline in March over 2024, the lowest level for the month since 2009.
  • Royal LePage's Anne-Elise Cugliari Allegritti expects home sales to remain flat this summer, but could rebound in the fall as buyer confidence improves with the election of a new government and easing of economic anxiety.
  • The number of newly listed properties fell 1% in April compared to a month earlier, with the national Home Price Index (HPI) declining by 1.2% in April from March and a drop of 3.6% from April 2024.
  • The national average sale price for homes was $679,866 in April, down 3.9% from April 2024, after falling 3.7% in March compared to a year earlier.
  • TD Bank economist Rishi Sondhi notes that there is pent-up demand from buyers staying on the sidelines, which could lead to a market surge if confidence improves later in the year.
  • Housing starts provided a glimmer of hope for the Canadian market, with more than 278,000 new homes launched in April, a 30% increase from March.

Statistics:

  • 35,000: Number of homes sold in Canada in April on a seasonally adjusted basis.
  • 9.8%: Sales decline in April compared to the same month last year.
  • 3.4%: Sales decline in Alberta compared to a month earlier.
  • 2.3%: Sales decline in British Columbia compared to a month earlier.
  • 1.1%: Sales increase in Ontario compared to a month earlier.
  • $679,866: National average sale price for homes in April.
  • 3.9%: Decline in national average sale price from April 2024.
  • 278,000: Number of new homes launched in April, a 30% increase from March.
  • 214,000: Multifamily housing starts in April, a 34% increase from March.

Sources:

  • Canadian Real Estate Association (CREA) report, published Thursday.
  • Royal LePage, Anne-Elise Cugliari Allegritti, director of research and communications.
  • TD Bank economist Rishi Sondhi.
  • Canada Mortgage and Housing Corp. (CMHC) report.
  • Globe and Mail article.