Home sales in March, average price increase from a year ago: CREA

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The Canadian Real Estate Association now expects the national median home price to rise 4.9 per cent on an annual basis to $710,468, more than double the growth it predicted in early 2024.

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In its updated forecast for the year released on Friday, CREA said it expects 492,083 homes to sell hands this year, up 10.5 percent from 2023.

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In its January forecast, CREA expected home sales to grow 10.4 percent this year and median home prices to rise 2.3 percent through 2024.

“If you look at last spring as a guide and add in record population growth last year and a central bank that could cut this summer rather than growth like last year, it could be interesting,” CREA said. senior economist Sean Cathcart in a press release.

“Will the event be higher interest rates that keep many people on the sidelines this year, or will the long-awaited and expected first rate cut bring many people back into the market?” Probably a bit of both.”

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Revised Forecast CREA reported March home sales rose 1.7 percent from a year earlier. The median price of a home sold last month was $698,530, up two percent from March 2023.

On a monthly basis, CREA said home sales rose 0.5 percent in March.

In March, the number of newly registered houses decreased by 1.6 percent compared to the previous month.

Meanwhile, on a national basis at the end of March, inventories stood at 3.8 months, unchanged from the end of February, but below the long-term average of about five months of inventories.

Conrad Zurini, owner of Re/Max Escarpment Realty, said that despite the Bank of Canada holding its key rate steady for the sixth straight time earlier this week, consumers are ready for lower borrowing costs.

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“Consumers think there's clear skies ahead,” says Zurini, who lives in Hamilton.

“This rate cut, regardless of when it comes this year, I think consumers think it's going to add fuel to the house price fire and they should jump in now.”

CREA Chairman Larry Serqua noted that while March's home sales rate was “very flat” month-over-month, anecdotal evidence from late last month and early April suggests activity is picking up.

Zurini said he is seeing signs of a potential boom on the ground. According to internal data at his firm, impressions have increased by 25 percent per week since April.

“Now can we get the inventory to meet the demand?” he said.

He said the increase in the value of homes on the market as a result of the increased demand could offset the reduction in the simple interest rate when buying a home.

“There's an expression in the mortgage world: If you wait for a rate, it's probably too late.”

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