Home prices typically fall to stimulate demand, but that’s not the case in Canada, apparently. Canadian Real Estate Association (CREA) data shows the price of a typical home climbed in March. Despite this upward tick, it was the weakest sales for the month since 2009. A real head scratcher, considering inventory remains historically robust.
Canadian Real Estate Prices See Third Consecutive Monthly Gain
Canadian home prices: composite benchmark price.
Source: CREA; Better Dwelling.
Canadian home prices jumped significantly last month. The price of a typical home advanced 0.5% (+$3.1k) to $664.4k in March, marking a third consecutive monthly increase. After the consistent monthly growth, prices remain just 4.7% (-$32.5k) lower than last year, though still 21.0% (-$176.9k) below the record high reached exactly four years prior.
Canadian Home Sales Hit Weakest March Since 2009
Canadian real estate sales: March.
Source: CREA; Better Dwelling.
High prices were definitely not driven by demand, as sales slipped 2.3% lower than last year to 38,709 units in March. That makes last month’s sales the weakest for the month since 2009, a 17-year low. While the drop wasn’t substantial, last year had already been historically weak. As noted last year, the population was much smaller back in 2009—about one-seventh smaller, providing roughly the same demand.
Canadian Real Estate Listings Drop, But Overall Supply Remains High
On the inventory front, the market showed little sign of improvement in terms of new listings. CREA reported 84,345 new listings in March, down 4.9% from last year—more than twice the rate of sales. However, last year saw unusually lofty inventory levels, leaving the demand balance relatively unchanged. The sales-to-new-listings ratio (SNLR) climbed just 1.2 percentage points to 45.9%. While that’s generally considered on the bottom half of balanced, it’s unusually low for the time of year. Last year’s SNLR was the weakest since 2009 for March, and this is only slightly better.
The inventory picture is a little more complicated these days than just the SNLR. It’s worth noting that new listings were down from last year, but 2025 was an unusually high volume for Canada in March. The pressure is amplified by stagnant inventory already on the market, with near-record volumes of built and unsold new construction inventory providing even more supply. Add to that a shrinking population in some key markets, and there are considerable hurdles to jump before any market normalization.
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