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Canada’s real estate market sees largest sales jump since 2022 crash in April

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Spring has finally brought a breath of fresh air to the real estate market in Canada. The Canadian Real Estate Association released its numbers for April, and we saw an 11.3 per cent increase in home sales, our third consecutive month of increasing volume and the largest increase in sales volume since the crash of 2022.

While monthly home sales volume is still relatively low—19.5 per cent below last year—this consistent growth represents a meaningful return toward the 10-year monthly moving average.

 

 

Still no supply 

 

The lack of supply continues to be the major theme here. Sellers are simply not nearly as active in the market as buyers are. While listings did edge up slightly since last month, supply is historically low. Although demand is low, supply is still far lower, and so the absorption of properties has sped up. 

 

More listings are selling

 

Absorption is best measured by the sales-to-new-listings ratio, which increased meaningfully to 70.2 per cent from 64.1 per cent a month prior, both well above the long-term average of 55.1 per cent. 

 

 

This imbalance has kept the market in a state of excess demand, or a “seller’s market,” and allowed prices to rise into the spring market with a little bit more than seasonal growth – with prices up 1.6 per cent since last month.

 


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