'Calm is Good' In Canada's Housing Market: BMO

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Erin Nicole Davis is a born and raised Toronto writer with a passion for the city and its urban affairs and culture.

A rare sense of calm is the name of the game as we move into Canada’s spring selling season. While the season is typically a busy one – perhaps even described as chaotic in the not-too-distant past – the Canadian real estate industry appears to be in a place of rest.– the “calm” is not necessarily a bad thing. This is especially true for first-time homebuyers who, in a climate of sky-high interest rates, are looking for some relief on the price front.

With this said, Porter calls the 10% year-over-year rise in sales activity “one small surprise,” especially given the relative calm in typically bustling markets like Toronto and Vancouver. “But large bounces in many medium-sized cities, aided by the timing of Easter this year, helped bump up the headline tally,” writes Porter. “The changing city mix—soft activity in the priciest cities—helps explain why average transactions prices fell 1.8% y/y.

Porter also illuminates the reality that multiples are the most dominate form of Canadian housing starts in Canada, comprising three-quarters of new building in the past year. While they undoubtedly open up the country’s housing supply once completed, it’s a long road to completion compared to other housing forms. So, the country won’t see enough supply to aid Canada’s affordability crisis in the near future, says Porter.

 

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Slow sales in Canada's housing market boon for affordability, rate cuts: BMO'When it comes to Canadian housing, calm is good,' says BMO's chief economist.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »