Two-thirds of Gen Z homebuyers hope to use personal savings for down payment<\/a><\/strong>\r\n <\/div>\nThe sales-to-new listings ratio dropped to 75.3 per cent, having soared to 89 per cent in January. Still, two-thirds of local markets were seller’s markets based on this ratio, while the other third was in balanced market territory.<\/p>\n
By the end of February, there was 1.6 months worth of inventory available nationwide, a tie with January and December 2021 for the lowest inventory level ever.<\/p>\n
National average price hits record $816,720<\/h3>\n
The aggregate Composite MLS Home Price Index (HPI) was up by a record 3.5 per cent monthly in February. Meanwhile, the non-seasonally adjusted Aggregate Composite MLS HPI increased by a record 29.2 per cent yearly last month.<\/p>\n
The actual \u2014 not seasonally adjusted \u2014 national average home price reached a record $816,720 in February, a 20.6 per cent increase from February 2021. When subtracting \u200b\u200bGreater Vancouver and the GTA from the equation, the national average price drops approximately $178,000 to $638,720.<\/p>\n
\u201cCombined 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,\u201d explained Cathcart. \u201cStill, in order to turn this market back towards balance long-term, building more new homes across the spectrum remains the key.”<\/p>\n
CREA revises 2022 forecast, sets projections for 2023<\/h3>\n
In a separate report<\/a>, CREA updated its forecast for home sales activity based on influences from higher interest rates, inflation and home supply.<\/p>\nThe company\u2019s latest forecast projects that 612,800 properties will be exchanged over the MLS this year, a 8.1 per cent decrease from 2021, but still the second-highest annual figure on record. CREA noted that this forecast is \u201cbasically the same as it was in the December 2021 forecast,\u201d but accounts for downward revisions in several provinces.<\/p>\n
The national average home price is now expected to grow 14.3 per cent annually to $786,000 in 2022, higher than initially projected thanks to an \u201cunprecedented imbalance of housing supply and demand.\u201d<\/p>\n
Heading into 2023, home sales are anticipated to stay strong as limited supply in addition to higher prices and interest rates slows things down. Next year, national home sales are projected to edge back another 2.7 per cent to 596,150 units, the third-best year on record.<\/p>\n
Property prices in 2023 are predicted to grow 3.2 per cent yearly to a little under $811,000.<\/p>\n
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<\/a>Photo:\u00a0karamysh<\/a> \/ Adobe Stock<\/em><\/p>\n