Sellers are 'back in the driver's seat' in Toronto's housing market, RBC says

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A housing correction that RBC once called historic appears to have run its course.

appears to have run its course and sellers are now “back in the driver’s seat in most major markets,” a new report from the bank suggests. published this week, RBC Senior Economist Robert Hogue said that “spring 2023 increasingly looks like the turnaround point for Canada’s housing market after a year-long slump,” with home sales across Canada rising 11.3 per cent month-over-month in April.

He said that the average benchmark price also increased in about three-quarters of all markets tracked by the bank last month, including in Toronto where prices rose 2.4 per cent to an average of $1.1 million."Earlier tentative signs of a turnaround in Toronto and Vancouver were confirmed in a big way in April," the report notes. "Home resales jumped 27 per cent and 25 per cent month over month, respectively, rolling back roughly one-quarter of the correction in one go.

"April's widespread vigour is a surprise to us. While we did expect the market to reach its cyclical bottom this spring, we thought it would take a while for the heat to return. Our view was—and remains—that the significant loss of affordability in the past year would keep buyers timid for some time," Hogue wrote.

"First-time buyers, in particular, continue to face major hurdles. Perhaps soaring immigration and a boiling hot rental market are becoming the primary driving forces fueling homebuyer demand. In which case, we could see prices extending April’s gains—possibly materially." The average price of a Toronto home across all property types peaked at $1,334,062 in February 2022 before dropping to a recent low of $1,037,542 amid an aggressive campaign to push up the cost of borrowing.

 

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Real estate prices on the rise again: RBC report forecasts the housing market correction is over‘Sellers back in the driver’s seat.’ The spring market was a turning point, as April home resales jumped 11.3% month over month nationwide, an RBC report said.
Source: TorontoStar - 🏆 60. / 55 Read more »