Canadian Housing Market Snapshot February 2022 Canadian Real Estate Association
February home sales rise as buyers scoop up first of the 2022 spring listings.
Statistics released today by the Canadian Real Estate Association (CREA) show national home sales were up in February 2022 as buyers jumped on the first batch of spring listings.
- National home sales rose 4.6% on a month-over-month basis in February.
- Actual (not seasonally adjusted) monthly activity came in 8.2% below the record February in 2021.
- The number of newly listed properties bounced back by 23.7% month-over-month.
- The MLS® Home Price Index (HPI) rose a record 3.5% month-over-month and was up a record 29.2% year-over-year.
- The actual (not seasonally adjusted) national average sale price posted a 20.6% year-over-year gain in February.
Home sales recorded over Canadian MLS® Systems climbed 4.6% between January and February 2022. The monthly increase in activity was likely the result of a rebound in new listings in February following big a decline in January. As such, stronger activity may persist as late-February new listings continue to sell in March. (Chart A)
Sales were up in about 60% of local markets in February, led by some big jumps in Calgary and Edmonton, as well as a gain ahead of the national increase in the GTA.
The actual (not seasonally adjusted) number of transactions in February 2022 came in 8.2% below the monthly record set in 2021. That said, as was the case in January and throughout the second half of 2021, it was still the second-highest level on record for that month.
“As expected, after a bit of a lull in January, we saw the first batch of spring 2022 listings come to market in February, and they were quickly scooped up by buyers” said Cliff Stevenson, Chair of CREA. “It’s unclear if this is the beginning of a re-emergence of some of the many would-be sellers who have been dormant for the last two years, or if the supply will fade towards the summer like it did in 2021. Either way, your best bet is to contact your local REALTOR®, who has the information and guidance you’ll need if you are planning on entering the market in 2022,” continued Stevenson.
“New supply bounced way up in February, which is similar to what we saw play out in 2020 and again in 2021,” said Shaun Cathcart, CREA’s Senior Economist. “The real question is what comes next? In the short term, expect at least one more month of stronger sales as the majority of those new listings came onto the market near the end of the month so many of the associated sales likely won’t happen until early March. Ideally, listings will continue to come out in big numbers in the months ahead. Combined with higher interest rates and higher prices, we could be at a turning point where price growth begins to slow down and inventories finally begin to recover after seven years of declines. Still, in order to turn this market back towards balance long-term, building more new homes across the spectrum remains the key.”