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Home Sales Still Down, But New Listings Signal Hope for Canadian Real Estate Market
February 21, 2023 | Posted by: Saif Jasim
Despite the continuing decline in home sales across Canada, the surge in new listings has brought a glimmer of hope for the real estate market. The Canadian Real Estate Association (CREA) forecasts a 2.3% year-over-year decline in home sales in 2023, along with a modest increase of 0.2% in home prices [[2]]. However, the current state of the housing market is not uniform across all provinces in Canada, with Ontario experiencing the largest drop in home prices by 20% year-over-year [[3]]. In this article, we will examine the current state of the Canadian housing market and explore the implications of the surge in new listings for potential home buyers and sellers.
The Current State of the Canadian Housing Market:
As reported by local real estate boards, home sales in Toronto and Vancouver were down by 45% and 55%, respectively, in January 2023 compared to the previous year. Similarly, average prices in both markets have dropped significantly, by 16.4% in Toronto and 6.6% in Vancouver compared to January 2022 [[1]]. However, new listings have surged across Canada, signaling a potential shift in the market. In February 2023, the Toronto Regional Real Estate Board (TRREB) predicted a 4% dip in the average GTA selling price from $1.19 million to $1.14 million, suggesting a potential slowdown in the rate of price growth [[5]]. This trend may also be observed in other parts of the country where home prices are either flat or declining [[2]].
Implications for Home Buyers:
The surge in new listings provides hope for those looking to enter the housing market. With more properties available, potential buyers may be able to find a property that suits their needs and budget. Moreover, the cooling of the market may allow buyers to negotiate better prices and terms with sellers. However, buyers should also be aware that the current state of the market is still subject to the overall economic climate and interest rates. The rise in interest rates has cooled the housing market, and further increases may lead to a continued decline in home sales [[2]].
Implications for Home Sellers:
The surge in new listings may signal a more competitive market for home sellers. With more properties available, sellers may need to price their homes more competitively in order to attract buyers. However, it's important to note that the market is still subject to overall economic conditions and interest rates. Moreover, in areas where home prices have declined, sellers may need to be more realistic in their pricing strategies [[3]].
Conclusion:
While the Canadian housing market continues to experience a decline in home sales and prices, the surge in new listings provides hope for potential home buyers and sellers. The cooling of the market may lead to better opportunities for buyers, while sellers may need to adjust their pricing strategies to remain competitive. However, it's important to note that the overall state of the market is still subject to the economic climate and interest rates.
We hope that this article provides you with the information you need to stay informed about the current state of the Canadian housing market. If you have any further questions or concerns, please feel free to contact us.