Canadian Existing-Home Sales Decline 3.1% Month-Over-Month in February

On Monday, the Canadian Real Estate Association (CREA) reported that home sales recorded over Canadian MLS® Systems posted a 3.1% decline between January and February, giving back some of the cumulative 12.7% increase in activity recorded between December 2023 and January. Still, CREA notes the general trend has been at somewhat higher levels of activity over the last three months when compared to a quiet fall market in 2023.

The actual, not seasonally adjusted, number of transactions was 19.7% above February 2023 levels. Part of that year-over-year double-digit gain reflects the fact that February 2023 sales were one of the lowest for that month in the past two decades, but it also reflects the fact that current activity has climbed back to only around 5% below the 10-year average.

The number of newly listed homes rose 1.6% on a month-over-month basis. CREA believes that gains may rise in the months ahead, depending on how many owners are preparing to list their properties for sale this spring.

There were 3.8 months of inventory on a national basis at the end of February, up slightly from the 3.7 months reported at the end of January. The long-term average is about 5 months of inventory.

The actual, not seasonally adjusted, national average home price in Canada was $685,809 in February, up 3.5% from February 2023.