Canada’s housing market receded from its record-high in April, as a resurgence in Covid-19 restrictions put a damper on the the country’s surging housing market.
According to the latest data published by the Canadian Real Estate Association (CREA), home sales across the country dropped 12.5% between March and April, while the new listings declined 5.4%. However, despite the slowing in activity, the national average home price remained elevated 41.9% year-over-year, at $696,000. Similarly, home sales are also up 256% from the nadir of April 2020.
Canada’s housing market has repeatedly soared to new records over the past year, as historically-low interest rates and demand for more spacious housing sent an onslaught of new potential homebuyers into the real estate market. “While housing markets across Canada remain very active, there is growing evidence that some of the extreme imbalances of the last year are beginning to unwind, which is what everyone wants to see happen,” explained CREA chair Cliff Stevenson.
As such, the decline in demand caused market conditions to relax. According to the realtor group, there were 2 months worth of inventory at the end of April, marking a slight increase from the record-low 1.7 months worth of inventory noted at the end of March.
Information for this briefing was found via the CREA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
