report released today<\/a>, company chair Cliff Stevenson noted that January was \u201cpretty quiet,\u201d for new listings, with supply numbers unlikely to shift until warmer weather appears.<\/p>\n\u201cThe question is will that supply be overwhelmed by demand as it was last spring, or will we start to see the re-emergence of some of the many would-be sellers who have been hunkered down for the last two years?\u201d he said in the report.<\/p>\n
Here\u2019s what we know about Canada\u2019s January housing market according to the latest from CREA.<\/p>\n
Home sales inched up slightly from December<\/h3>\n
Between December 2021 and January, the number of homes that traded hands over MLS grew by one per cent.<\/p>\n
The actual (not seasonally adjusted) number of transactions in January was 10.7 per cent less than the monthly record established in January 2021. Like what was mostly the case throughout the second half of 2021, January 2022 still reported the second-highest level for sales for that month.<\/p>\n
Within local markets, it was an even split between local communities that reported an increase or decrease in sales last month. Gains made in Calgary, Greater Vancouver and Ottawa during January offset declines in Winnipeg, Montreal, the Fraser Valley and Hamilton-Burlington.<\/p>\n
Monthly new home supply reports double-digit drop<\/h3>\n
Month-to-month, the quantity of newly-listed homes fell \u200b\u200b11 per cent in January. A pullback in the Greater Toronto Area made up more than half of the national decline, according to CREA.<\/p>\n
By the end of the month, there was 1.6 months of inventory on a national basis, a level that ties with December 2021 for the lowest level ever recorded.<\/p>\n
As sales nudged up and new inventory declined again, January\u2019s sales-to-new listings ratio rose to 89.4 per cent, up from 78.7 per cent in December. This was the second-highest level on record and just slightly below the record 90.2 per cent established last January. The long-term average for the national sales-to-new listings ratio is 55 per cent.<\/p>\n\n
Based on this ratio, 85 per cent of local markets were categorized as seller\u2019s markets in January, while the remaining 15 per cent were in balanced market territory.<\/p>\n
Shaun Cathcart, CREA\u2019s senior economist, explained in the report that the market\u2019s ideal situation between now and the summer would be if a large portion of sellers emerged for the spring market.<\/p>\n
\u201cIf that were to occur, similar to 2021, we\u2019d likely see a massive number of sales take place which would get a lot of frustrated buyers into homeownership, and we\u2019d likely see some cooling off on the price growth side if those offers are spread across more listings,\u201d explained Cathcart. \u201cThose are all things this market needs. It really comes down to how many properties come up for sale in the months ahead.\u201d<\/p>\n
Average home price rises more than 20 per cent from 2021<\/h3>\n
As market conditions stay persistently tight, the Aggregate Composite MLS Home Price Index (HPI) was up by a record 2.9 per cent from December to January, similar to the gains reported in the last three months. The non-seasonally adjusted Aggregate Composite MLS HPI climbed 28 per cent yearly in January.<\/p>\n
According to CREA, the MLS HPI provides the best way to measure price trends as averages can be distorted by changes in the mix of sales activity between each month.<\/p>\n
The actual (not seasonally adjusted) national average home price was a record $748,450 in January, up 21 per cent from January 2021. When excluding Greater Vancouver and the GTA from this calculation, the national average price for last month falls approximately $160,000 to $588,450.<\/p>\n
Annual price growth recorded in multiple communities<\/h3>\n
When analyzing markets across the country, several cities reported price increases.<\/p>\n
Yearly price growth is \u201cin line,\u201d with the national figure at 28 per cent in British Columbia, but lower in Vancouver and higher in other areas of the province.<\/p>\n
Alberta and Saskatchewan experienced annual price growth in the mid-to-high single-digit range, while Manitoba saw gains of 13 per cent annually.<\/p>\n
![\"CREA\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2022\/02\/crea-january.jpg\")
<\/a>Photo:\u00a0Volodymyr Kyrylyuk<\/a> \/ Adobe Stock<\/em><\/p>\n