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In February, Canada's housing market experienced a relatively quiet period according to the Canadian Real Estate Association (CREA). Home sales decreased by 3.1% from January, marking a pause in the momentum seen over the preceding months. Despite this, the national average home price rose to $685,809, up 3.5% year over year. Newly listed properties increased by 1.6%, indicating preparation for the anticipated busy spring market. CREA noted that the sales-to-new-listings ratio remained relatively balanced at 55.6%, suggesting equilibrium between buyers and sellers.

Chair Larry Cerqua of CREA speculated on the forthcoming spring market, suggesting its activity hinges on the actions of sidelined buyers. Cerqua mentioned that buyers may be waiting for signals of interest rate cuts from the Bank of Canada or for an increase in listings during the spring. Economists foresee potential interest rate cuts later in the year, which could stimulate housing market activity. Shaun Cathcart, senior economist at CREA, hinted that February might be the last quiet month in 2024, with pent-up demand likely to drive future market dynamics.

Despite the subdued sales in Ontario, British Columbia, and Quebec, Canada's housing market is still on track for solid first-quarter gains. TD Bank economist Rishi Sondhi attributed February's lower sales partly to rising bond yields affecting fixed mortgage rates. However, economists like Doug Porter from BMO remain optimistic, suggesting that the market is finding stability after a cooling period. As population growth continues, lowered policy rates from the Bank of Canada could invigorate housing activity, with prospective buyers eagerly awaiting rate cuts to enter or re-enter the market.

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