In March 2024, the Canadian real estate market exhibited signs of stability with minor yet significant fluctuations in sales and price trends. According to the latest data from the Canadian Real Estate Association (CREA), sales slightly increased by 1.7% compared to last year and by 0.5% compared to April. Despite a yearly increase of 0.7% in the MLS property price index, there was a decrease of 0.3% from the previous month. The national average price stood at $698,530, marking a 2.0% increase since March 2023.

A turnaround was observed in new listings in March, which decreased by 1.6%. However, there was a significant rebound in new supply around the second week of the month, which spurred an increase in sales at the month's end as well as a rise in listings at the beginning of April.

April Data Outlook and Interest Rate Implications

"April's data will be crucial to understanding how buyers react to the increase in new properties on the market. Considering last year's record demographic growth and indications that the Bank of Canada might lower rates this summer, the upcoming period could be particularly interesting," explains Shaun Cathcart, CREA's senior economist.

The real estate market remains under the sway of high interest rates, which could deter some buyers. Nevertheless, the anticipation of rate cuts by the Bank of Canada could reinvigorate buyer interest, especially if these reductions materialize. Sellers also appear to be waiting for these adjustments, hoping for a boost in demand following the first rate cut.

This climate of anticipation and speculation makes the Canadian real estate market particularly captivating to observe over the coming months.