Record National Home Sales in March; Toronto and Vancouver See Monthly Pullback

The Canadian Real Estate Association (CREA) reported a record number of homes were sold nationwide in March, even as the two largest and most expensive markets — Toronto and Vancouver — experienced modest declines from the previous month. CREA’s national snapshot shows a housing market that remains highly active overall, but one that is beginning to show uneven regional patterns as new federal mortgage rules come into effect.

Widespread Activity Across Local Markets

According to CREA, roughly 60 percent of local real estate markets recorded higher transaction activity in March compared with February. Notable growth was observed in several major centres outside the two largest markets, including Edmonton, Calgary, Montreal and Victoria. This broad-based activity contributed to the national record for monthly sales, demonstrating strong demand in many regions across Canada.

Toronto and Vancouver Dip While National Sales Rise

Despite the overall national increase of 1.5 percent in sales from February, the Greater Toronto Area experienced a 1.8 percent decline in transactions, and the Vancouver area saw a smaller drop of 0.3 percent. These modest month-over-month reductions in the two hottest markets stand in contrast to gains elsewhere and suggest the market is responding differently across regions. The divergence underscores how local supply and demand dynamics, inventory levels and recent policy changes can produce varied outcomes from one city to the next.

New Federal Down Payment Rules Begin to Influence the Market

March represented the first full month after federal changes to mortgage rules designed to cool overheated housing markets. Under the revised regulations, buyers acquiring properties priced between $500,000 and $1,000,000 now face a higher minimum down payment of 10 percent. The policy aims to moderate price acceleration in red-hot areas such as Toronto and Vancouver while preserving activity in other markets.

It is still early to draw definitive conclusions about the long-term impact of the new rules, but the timing aligns with the small month-over-month declines in Toronto and Vancouver. The higher upfront cost for mid-priced purchases could slow some speculative activity or cause buyers to adjust timelines, purchase prices or target locations, while buyers in other regions may remain unaffected or respond differently.

Prices Remain Strong, with Big Influence from Major Markets

The national average price for homes sold through CREA’s members was reported at $508,567 — a year-over-year increase of 15.7 percent. CREA notes that this national figure is heavily influenced by higher-priced transactions in Toronto and Vancouver. When those two markets are excluded, the national average price falls to $366,950, which still represents a robust year-over-year gain of 10.4 percent compared with March 2015.

These numbers highlight an important distinction: headline national averages can mask substantial regional differences. Homebuyers and sellers should consider local trends and conditions rather than relying solely on national aggregates when making decisions.

Inventory Tightness in Key Areas

The number of properties listed for sale declined modestly in March, falling by 1.4 percent compared with February. This dip in supply was concentrated largely in the Greater Toronto Area and the nearby Hamilton-Burlington corridor. Lower inventory in those regions can contribute to upward pressure on prices and create more competition among buyers, even as sales volumes fluctuate.

What This Means for Buyers and Sellers

For sellers, persistently strong year-over-year price growth in many regions suggests favorable conditions remain in place, although local market dynamics vary. Sellers in Toronto and Vancouver may face a slightly different environment in the near term as the market absorbs the new mortgage requirements. For buyers, especially those targeting homes priced between $500,000 and $1,000,000, the higher minimum down payment means planning for increased upfront costs is essential.

Market participants should watch both policy developments and local supply trends closely. While national statistics provide useful context, the path of prices and sales activity will continue to diverge across Canada’s diverse real estate markets.