The cooling trends in the Canada Real Estate market that emerged this spring are still firmly in place across Canada’s housing markets. According to the early reports from local real estate boards for the most part showed both resale activity and prices continuing to soften in August. Toronto and Hamilton however saw a humble resale in a month that increased what we think is not more than volatility around the trend.
The majority of markets in Quebec, British Columbia and Ontario, operate very well below all the pre-pandemic levels at this present stage. Easy demand supply conditions and souring of sentiments are fueling all the price corrections.
They all provide home buyers with a stronger hand in negotiations that help them to reverse enormous appreciation which occurred during the pandemic period. This amazing process is one of the most visible in the exurbs and suburbs of Vancouver and Toronto where price drops have been significant up to date.
Cooling Trends housing market in Canada has emerged this spring and are firmly in different places across the whole Canadian Housing Markets.
Rise in interest rate is pushing buyers to all sidelines and reducing purchasing budget. According to the expectations of the Bank of Canada to increase its policy rate nearly to 3.5% this will keep the real estate market chilling in the months ahead.
Affordable Real Estate markets in Toronto and Vancouver, and all of their surrounding regions, are at risk in their stretched outsized price and affordability gains during the pandemic period.
Buyers in Toronto area haven’t given up
The real estate market took a deep breathe from the steep drop since spring. Home resales value rose around 11% in between July and August on a seasonal basis though remained below pre-pandemic different levels.
It’s too early to call this act at bottom, it can be seen as an evidence buyers haven’t given up. Correction in Price may offer many more opportunities. Composite MLS of Toronto HPI fell down for the straight fifth month, down to 2.8% to $1.12 million.
Since March peak, index has lost around 16% in value which is more than $2,10,000. A biggest steep decline can be seen in single detached home prices, especially in Durham and Halton.