The average home price remains well above last year's levels, according to CREA, with January recording a 9.5% year-over-year increase. On a monthly basis, prices have declined slightly for the past 3 months, with January showing a 0.4% decline in the average home price.
According to the Canadian Real Estate Association, a seasonally adjusted 36,658 homes sold in January. This is up 2.7% from last year but down 3.3% from December. Severe weather likely played some role in the month-to-month decline. The extent to which weather is responsible remains to be seen, and may be reflected as rebound to demand in the early warmer months.
Despite the colder-than-average winter, the number of new listings coming on the market in January was up slightly on a seasonally adjusted basis compared to those seen in December. This slight increase in listings, combined with the decline in sales, led to a sales-to-new-listings ratio of 52.4%. The Canadian market remains well within balanced territory by CREA standards, but this sales decrease represents a slight movement in favor of buyers. With weather likely having an effect on buyer traffic, the overall market trend won't become clear until weather normalizes for a full month, or we move into the warmer part of the year.
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