Published October 16, 2023 • 2 Min Read
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.
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