Other markets remain robust while BC, Ontario continue to slow, says economist
Housing markets across Canada are experiencing vastly different conditions as trade war uncertainty begins to ease, with some regions seeing modest recovery while others face continued price declines, according to a new RBC report.
Local real estate board statistics show transactions increased modestly between May and June in several major markets, including Vancouver, Edmonton, Regina, Saskatoon, Toronto, and Halifax. However, these gains represent only a fraction of the pullbacks experienced earlier this year.
“The bottom line is activity is still soft in Southern Ontario and British Columbia even though it’s stabilized,” said Robert Hogue, RBC’s assistant chief economist. “The picture is generally more robust in other parts of the country with exceptions.”
Toronto area favours buyers
The Toronto area is experiencing an abundance of homebuying options not seen in decades, with the number of homes for sale continuing to surge. This dynamic gives buyers significant time to make decisions and power in negotiating prices, the report noted.
Toronto’s MLS Home Price Index in June was down 5.5% from a year ago, representing more than $58,000 in lost value. Condo apartments recorded the biggest annual decline at 8% due to plentiful supply.
Despite slightly improving affordability and easing trade war fears attracting more buyers in June, home resales picked up only 8.1% from May. Activity remains sluggish near cyclical lows amid growing job concerns.
Montreal market stalls
According to RBC, Montreal’s recovery has stalled this year in the face of the trade war. Home resales slipped for a third straight month between May and June, falling an estimated 2%.
However, the modest pullback may relate more to fewer sellers entering the market than buyers withdrawing. New listings fell by a larger 7% from May, tightening the supply-demand dynamic further.
This has maintained price pressure, with single-family homes and condos sustaining solid appreciation. Median prices were up 7.4% and 6.6% from a year ago, respectively.
Vancouver prices continue decline
Vancouver’s MLS HPI declined 2.8% from a year ago in June, marking the fourth straight month of annual declines. Buyers remain in the driver’s seat with supply-demand conditions heavily favouring them amid mounting inventories.
Active listings reached a 13-year high in June, though home resales rose for the first time this year, up more than 2% from May.
Calgary experiences soft landing
Calgary continues cooling from its earlier heated state, with inventory rising and prices softening. The city’s MLS HPI fell 3.6% below year-ago levels in June, though economists see limited downside for property values given aligned supply and demand conditions.
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