RBC Economics Research - Housing Commentary "Housing market activity remained weak in May as spring season fails to lift off" - Latest edition

Tina Myrvang

Client Care Lead
Staff member
REIN Member
Nov 15, 2010
Just released our latest monthly housing market update entitled " Housing market activity remained weak in May as spring season fails to lift off".

Highlights of the report:

• Canada’s housing market is taking longer than we anticipated to shake off the stress-test lull in activity. Home resales were still weak in May, slipping marginally by 0.1% from April. Vancouver, Toronto and Montreal recorded flat or very slightly rising activity.

• More properties were put on the market in May with new listing rising 5.1% from April, which may support stronger activity in the coming months.

• Demand-supply conditions remain balanced overall in Canada though they softened slightly last month. The softening was more pronounced in Western Canada, where markets such as Calgary, Edmonton, Regina and Saskatoon are currently more favourable to buyers.

• Prices are now rising at their slowest pace in almost nine years. The national benchmark price was up by only 1.0% year-over-year in May. Benchmark prices were below year-ago levels in Toronto, Regina, Saskatoon, Edmonton and Calgary.

• The trio of new mortgage regulation, higher interest rates and additional market-cooling measures in British Columbia is proving to be a tougher challenge than we anticipated. Still, we don’t see any evidence that Canada’s market is becoming unhinged at this point. We continue to believe that recent developments are mostly positive for the longer-term health of the market despite the ongoing ‘landing’ being a little rougher than we previously thought.

Link to the full report

To view, print and download the new report, click on the following link: