Comparative Market Analysis for February in Canada

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According to a report by Edge Realty, in February, the real estate markets of Canada’s provinces experienced a variety of trends, but Canada as a whole continued to face affordability issues.

Source: Edge Realty

Home Sales

In February, the demand for homes in Canada decreased significantly. Seasonally adjusted home sales fell by 3.1% from month to month (m/m) for the entire country. However, this decrease wasn’t experienced equally in all provinces, and some actually experienced increases.

The decline in British Columbia (BC), and Ontario was especially pronounced, with both experiencing a 7.2% monthly drop. Sales grew by nearly 14% over the past year (y/y), but Alberta was the leader with a 25% rise.

Two graphs displaying canadian home sales data: the left shows sales numbers over time, and the right depicts monthly percentage changes.

Line graphs comparing seasonal adjustments in home sales between british columbia and alberta from 2010 to 2024.

Line graphs comparing seasonally adjusted home sales in ontario and atlantic canada, showing fluctuations and trends over time.

Source: Edge Realty

Listings

The supply side also experienced significant changes in February. New listings increased 1.6% m/m across the country. BC had the largest increase, a 5% surge. Listings are now 20% higher than 2023 levels. Different provinces experienced different results; Ontario saw a slight drop of 0.3% for new listings in the month.

Line graph titled "new listings- canada," displaying seasonal adjustments in real estate listings from 2011 to 2024, with scale adjustments for march-may 2020.

Source: Edge Realty

Market balance dropped in February in most regions, with notable declines in the sale-to-new listings ratio in BC, which dropped to 44%, indicating a shift towards a buyer’s market. Atlantic Canada defied the trend by maintaining a stable balance in the market.

Line graph showing the sales-to-new listings ratio in canadian regions from 2017 to 2024, with distinct colored lines representing different areas.

Source: Edge Realty

Surprisingly the active inventory at month’s end rose by 1.2%, or almost 10% year-over-year. BC, with its 7.1% increase, was the main cause of this rise. Ontario and Alberta, on the other hand, experienced declines. Alberta saw inventory levels drop to less than half what they were from 2018 to 2019.

Two charts showing real estate data for canada: "active listings - canada" depicts a declining trend in listings, and "monthly change in active listings" shows fluctuating monthly percentage changes.

Two line graphs comparing seasonally adjusted active real estate listings in british columbia and alberta from 2017 to 2023, showing a downward trend in both provinces.

Two line graphs comparing active real estate listings in ontario and atlantic canada from 2010 to present, showing seasonal adjustments. ontario's listings fluctuate, while atlantic canada shows a decline.

Source: Edge Realty

While the MLS House Price Index reported that national house prices were flat in February, the prairie provinces saw a continued upward trend. The index flattened after five consecutive months of declines. Both the 1-month and 3-month changes highlight the prairies’ positive performance, contrasting with the declines in major Ontario metros.

Two graphs displaying canadian housing market trends; the left shows monthly price changes and the right shows the benchmark house price over time.

Bar graph showing 1-month and 3-month house price changes by city in canada, with both increases and decreases in values.

Source: Edge Realty

Nationally, the house prices in February were 14% below their peak, which translates into a real, adjusted for inflation, decline of 22%. This shows the importance of the real estate correction, even if the severity varies across regions.

Bar graph showing percent change in house prices from peak, both nominal and inflation-adjusted, for canadian provinces.

Source: Edge Realty

The affordability challenge persists despite the February trends. The monthly payment needed to buy a typical Canadian home at 80% loan-to value ratio dropped to $3,250 in Feburary, down $18 compared to the previous month, and nearly 9% below the peak in September of 2023.

Affordability is a major issue in Canada, except for the prairies and Atlantic Canada.


‘ Credit:
Original content by www.canadianrealestatemagazine.ca – “February Market Comparison Across Canada”

Read the complete article at https://www.canadianrealestatemagazine.ca/news/canada-re-market-trendfeb-24/

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