Canadian Home Sales Jump as Demand Continues to Outpace Limited Supply

The Canadian Real Estate Association (CREA) reported Monday (5-15-23) that homes sales recorded over the Canadian MLS® Systems posted an increase of 11.3% from March to April. This follows a smaller back-to-back monthly gain between February and March. The April sales increase was broad-based but once again dominated by the BC Lower Mainland and the Greater Toronto Area (GTA).

The actual, not seasonally adjusted number of transactions in April was 19.5% below April 2022—but still a markedly smaller decline that those seen over the past year.

CREA is reporting that the number of newly listed homes increased 1.6% month-over-month in April. Nevertheless, the new supply of listed homes remains at a 20-year low. At the end of April there were 3.3 months of inventory available on a national basis, down half a month from 3.8 months at the end of March. The long-term average for this measure is about 5.0 months.

The actual, not seasonally adjusted national average home price was $716,000 in April, down 3.9% from April 2022 but up $103,500 form January 2023—a gain owed to a outsized sales rebound in the GTA and Lower BC Mainland. Excluding the GTA and Greater Vancouver from the calculations cuts more than $144,000 from the national average price.