The number of homes on the market nationally increased for the third consecutive month in February on a seasonally adjusted basis, according to the Canadian Real Estate Association. The industry group said yesterday there were 4.7 months of inventory available in Canada in February, up from 4.5 months in January.
That trend in Mississauga, Ontario has put buyers and sellers in an equilibrium not seen since before the market downturn began about two years ago. The ratio of new listings to sales, an indicator used by analysts to gauge the health of the resale housing market, left the "favourable to sellers" range to the "balanced market" range in February. It's a sign of stability for a sector that has seen wild price appreciations as buyers competed ferociously for the few homes on the market.
"Further expected supply increases will continue to take the steam out of housing markets in as the year progresses," said Gregory Klump, chief economist at the Canadian Real Estate Association. "There are still a number of major markets where sales negotiations favour the seller due to a shortage of inventory, but supply has begun rising." More listings help prevent bidding wars and could slow house-price gains this year. The association expects prices nationally to decline slightly next year.
