Homebuyers find ‘bargaining power’ in spring housing market. Here’s why – National | Globalnews.ca

The Canadian housing market is already at its “most balanced” yet due to a surge in new listings but a lack of demand from buyers. COVID-19 Pandemic, says national real estate association.

Canadian Real Estate Association (CREA) said this on Wednesday home sale There was a 1.7 percent decline between March and April.

However, sellers were on the move to push the number of newly listed homes up 2.8 percent month-on-month.

A slowdown in sales but an increase in listings led to a 6.5 percent increase in the total number of homes on the market, CREA said, to the highest level since just before the COVID-19 pandemic began. This is the second largest month-on-month jump in total properties for sale.

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“After a long hibernation, the spring market is now officially underway,” CREA President James Mabey said in a statement. “The increase in listings is resulting in the most balanced market conditions we have seen nationally since before the pandemic.”

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Spring housing market and Bank of Canada interest rates: What to expect

The sales-to-new listings ratio, meanwhile, declined to 53.4 percent, slightly below the long-term average of 55 percent.

Mabey said with mortgage rates still high and no interest rate cuts yet from the Bank of Canada, many buyers are still sidelined and unable to enter the market.

“But, for those who can, this is the first spring market in some time where they can shop, take their time and exercise some bargaining power,” he said.

Home prices also remained stable, with little change in the CREA Home Price Index for the third consecutive month.

The national median home price in April was $703,446, down 1.8 percent from a year earlier, CREA said.

The association highlighted Calgary, Edmonton and Saskatoon as exceptions to the trend, with prices in each market rising steadily over the past year.

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