Residential Market Commentary - No Market Bloom in March

Canada’s resale housing market continued to plod along in March dampening expectations for a springtime revitalization. 

The latest figures from the Canadian Real Estate Association show sales came in virtually flat (-0.1%) compared to February, and with a 2.3% decline from a year earlier. 

Home prices continued to ease as well.  The national average resale price fell 0.8% year-over-year. CREA’s preferred measure of prices, the National Composite MLS Home Price Index, marked its 16th consecutive month of declines, coming in 0.4% lower than February and 4.7% below March of 2025. 

National prices were dragged down by declines in B.C., Alberta and Ontario which offset gains in other provinces, including Quebec and Atlantic Canada. 

New listings edged down slightly (-0.2%) compared to February, but fewer sales kept the sales-to-new listings ratio tilted slightly in favour of buyers at 47.8%. 

CREA has been forecasting a turnaround for the housing market this spring, citing lower interest rates and pent-up demand, especially from first-time buyers. However, uncertainty caused by the war in Iran, fears of inflation and a mid-March jump in fixed mortgage rates appear to be holding back buyers. 

“The timing of higher mortgage rates, along with the perception they may be temporary, could keep would-be buyers away at the most active time of year – April, May, and June – as they wait for rates to come back down,” said CREA’s Senior Economist Shaun Cathcart.