1 Products and services may be offered by Royal Bank of Canada or by a separate corporate entity affiliated with Royal Bank of Canada, including but not limited to Royal Mutual Funds Inc., RBC Direct Investing Inc. (Member–Canadian Investor Protection Fund), RBC InvestEase Inc., RBC Global Asset Management Inc., Royal Trust Company or The Royal Trust Corporation of Canada
This article was published with files from RBC Economics.
Sellers are returning to the housing market, and September’s data from real estate boards in all major markets are showing an increased number of listings. A new report by RBC Economics cites the financial impact of soaring interest costs as the main reason prompting homeowners to move.
The report entitled “More sellers, fewer buyers take pressure off housing prices in Canada,” says high interest rates are also limiting the number of buyers that are willing to bear the cost of borrowing. Home sales are weakening in major markets, moving towards a buyer’s market, particularly in British Columbia and Ontario.
While the report says price declines are modest so far, the MLS Home Price Index fell slightly month-over-month in Vancouver, the Fraser Valley and Toronto in both September and August.
One exception is Calgary; supply and demand in the housing market remains tight. Population growth and lower ownership costs than in British Columbia and Ontario are keeping demand there high. Calgary is the hottest market in Canada at the moment, and according to the report, it doesn’t appear prices will let up soon. The report projects little change in the months ahead overall. Here are some key numbers showing more listings, and a cooling market:
44%: Year-over-year increase in new home listings in Toronto
2%: Increase in home sales in Montreal over the past month
0.4%: Decrease in home prices in Vancouver in September
8.7%: Annual increase in home prices in Calgary Find the full RBC report at rbc.com/economics.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.