{"id":1847,"date":"2024-06-05T12:17:01","date_gmt":"2024-06-05T16:17:01","guid":{"rendered":"https:\/\/lucynefarand.com\/?p=1847"},"modified":"2024-06-05T12:17:01","modified_gmt":"2024-06-05T16:17:01","slug":"chute-des-ventes-residentielles-canadiennes-pourquoi-les-acheteurs-hesitent-ils","status":"publish","type":"post","link":"https:\/\/lucynefarand.com\/en\/nouvelles\/chute-des-ventes-residentielles-canadiennes-pourquoi-les-acheteurs-hesitent-ils\/","title":{"rendered":"Canadian Home Sales Drop; What\u2019s Holding Buyers Back?"},"content":{"rendered":"<p>It appears Canadian home buyers have hit the snooze button on coming out of hibernation.<\/p>\n<p>When comparing the amount of homes sold in April to March, the number of transactions was down 1.7%.<\/p>\n<p>When looking at year-over-year comparisons, home sales were up 10.1% in April 2024 compared to April 2023, but as always, it\u2019s important to remember year-over-year comparisons offer good reference points, while month-over-month comparisons are good for analyzing trends.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/i0.wp.com\/images.ctfassets.net\/gm6df3h7p862\/6IxmsZB9OCniz5vI7XBUAn\/3304e126aad9d604edbbabad1f23fb42\/natl_chartA01_xhi-res_en.png?w=840&amp;ssl=1\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>So, before we look at what\u2019s leading to the current trends, let\u2019s do a bit of a recap of how we got here:<\/p>\n<ul>\n<li>New listings were at a 20-year low in April 2023.<\/li>\n<li>Buyers suddenly emerged, which led to price growth not seen since the middle of 2020 to early 2022.<\/li>\n<li>The Bank of Canada then hiked rates twice in the summer of 2023, which effectively halted the growth.<\/li>\n<li>The Bank of Canada has been explicit it does not want to see that type of home price growth again.<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/i0.wp.com\/images.ctfassets.net\/gm6df3h7p862\/3Fgo2TJi8q1DAMsSzobHiQ\/d52f79e63c5f49b0be68638cd6401f6f\/natl_chartA04_xhi-res_en.png?w=840&amp;ssl=1\" \/><\/p>\n<h2>Why Did Home Sales Decline in April?<\/h2>\n<p>A frenzied market was a lot less likely this year because \u201cwe have a healthier supply of listings on the market,\u201d according to Shaun Cathcart, Senior Economist of the Canadian Real Estate Association (CREA) in the latest CREA Housing Market Report (available to watch below).<\/p>\n<p>&nbsp;<\/p>\n<p>\u201cWe have 30,000 more listings at this time this year than we did last year and new listings are totally back to normal levels at this point,\u201d Cathcart said. April\u2019s national sales-to-new listings ratio was down to 53.4%, indicating a \u201cbalanced\u201d market that\u2019s below the long-term national average of 55%.<\/p>\n<p>What may be happening, he states, is that many prospective Canadian home buyers have taken an \u201cI\u2019ll believe it when I see it\u201d stance when it comes to declining interest rates, which may not be on the horizon until late July.<\/p>\n<p>&nbsp;<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/i0.wp.com\/images.ctfassets.net\/gm6df3h7p862\/19b3RYkiiL8qgdXO3BDQmq\/359084fa36241b925ac049ea0a3377bf\/natl_chartA03_xhi-res_en.png?w=840&amp;ssl=1\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>The theory is even though there are more homes on the market, Canadian home buyers are holding back compared to last year, possibly until they are confident interest rates are on their way down.<\/p>\n<h2>Canadian Home Prices Remain Mostly Unchanged<\/h2>\n<p>More homes and less sales helped keep prices cool in April. CREA stated slower sales amid more new listings resulted in a sharp 6.5% jump in the overall number of properties on the market, yet the national composite\u00a0<a href=\"https:\/\/www.crea.ca\/housing-market-stats\/mls-home-price-index\/\" target=\"_blank\" rel=\"noopener\">MLS\u00ae Home Price Index (HPI)<\/a>\u2014the most advanced and accurate tool to gauge a neighbourhood\u2019s home price levels and trends\u2014was the same in April compared to March.<\/p>\n<p>\u201cThe increase in listings is resulting in the most balanced market conditions we\u2019ve seen at the national level since before the pandemic,\u201d said\u00a0<a href=\"https:\/\/www.realtor.ca\/agent\/1566130\/james-mabey-110-5-giroux-rd-st-albert-alberta-t8n6j8\" target=\"_blank\" rel=\"noopener\">James Mabey<\/a>, the newly appointed Chair of CREA\u2019s 2024-2025 Board of Directors. \u201cMortgage rates are still high, and it remains difficult for a lot of people to break into the market but, for those who can, it\u2019s the first spring market in some time where they can shop around, take their time and exercise some bargaining power.\u201d<\/p>\n<p>The not seasonally adjusted National Composite MLS\u00ae HPI dipped 0.9% on a year-over-year basis, the first decline since last July. \u201cThis mostly reflects how prices took off last April, something that has not yet been repeated in 2024,\u201d\u00a0<a href=\"https:\/\/stats.crea.ca\/en-CA\/\" target=\"_blank\" rel=\"noopener\">CREA stated in its monthly report.<\/a><\/p>\n<p>The actual national average home price was $703,446 in April 2024, down 1.8% from April 2023.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/i0.wp.com\/images.ctfassets.net\/gm6df3h7p862\/1QL1wDbkvlnokVStfNl7eJ\/c5e929230a60df18cf7d30b28b548580\/natl_chart_of_interest03_xhi-res_en.png?w=840&amp;ssl=1\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>When it comes to trying to navigate the home buying or selling process in these conditions, Mabey has a piece of advice: \u201cMarket conditions vary across the country, so if you\u2019re thinking about buying or selling a home this year, you should contact a REALTOR\u00ae in your area today.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p>Source: Realtor.ca<\/p>\n<p>Contributor Matt Day<\/p>","protected":false},"excerpt":{"rendered":"<p>It appears Canadian home buyers have hit the snooze button on coming out of hibernation. When comparing the amount of homes sold in April to March, the number of transactions was down 1.7%. When looking at year-over-year comparisons, home sales were up 10.1% in April 2024 compared to April 2023, but as always, it\u2019s important [&hellip;]<\/p>\n","protected":false},"author":724,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1847","post","type-post","status-publish","format-standard","hentry","category-nouvelles"],"acf":[],"_links":{"self":[{"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/posts\/1847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/users\/724"}],"replies":[{"embeddable":true,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/comments?post=1847"}],"version-history":[{"count":1,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/posts\/1847\/revisions"}],"predecessor-version":[{"id":1848,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/posts\/1847\/revisions\/1848"}],"wp:attachment":[{"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/media?parent=1847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/categories?post=1847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lucynefarand.com\/en\/wp-json\/wp\/v2\/tags?post=1847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}