Canadian real estate agents suggest that housing prices may have found their floor, according to February's figures from the Canadian Real Estate Association (CREA). After a five-month decline, prices, measured by the seasonally adjusted MLS Home Price Index, remained steady from January, ending the 1.3% drop observed from December to January.

National Average House Price Sees Annual Increase

The national average house price in February stood at just under $686,000, marking a 3.5% increase over the last twelve months.

Sales Trends and Market Activity

Despite a nearly 20% sales increase compared to last February—a notably quiet month—sales in February fell by 3.1% from January. CREA anticipates this price stabilization could signal an imminent reversal in demand.

Historical Context and Future Outlook

The press release from CREA highlights the rarity of such sharp changes, noting only three other instances in the last two decades where similar sudden shifts in monthly percentage changes were observed, all during periods of increasing demand over the last four years.

New Listings and Market Ratios

New listings rose by 1.6% in February from January, pushing the sales-to-new-listings ratio to 55.6%, with the long-term average at 55%.