RBC Reports Sluggish Start to Canada's Spring Housing Market
Royal Bank of Canada (RBC) has reported a slower-than-expected start to Canada's spring housing market, indicating that the country's red-hot housing market may finally be cooling off.
According to RBC, the number of homes listed for sale has been increasing, while the number of buyers has been decreasing, resulting in a more balanced market.
RBC's findings are in line with other recent reports that have shown a slowdown in Canadian real estate activity, including a drop in home sales and a decline in housing starts.
The report suggests that the recent rise in interest rates and stricter mortgage rules may be contributing to the cooling of the Canadian housing market.
Despite the cooling trend, RBC still expects home prices to rise by 8.4% this year, although this is down from its previous forecast of 9.7%.
The bank also expects sales activity to pick up in the second half of the year, as pandemic restrictions ease and more buyers enter the market.
However, RBC notes that there are still risks to the housing market, including the possibility of a resurgence of COVID-19 cases, rising inflation, and changes to government policies.
The cooling of Canada's housing market may be good news for potential homebuyers who have been struggling with high prices and fierce competition in recent years.