Canadian real estate market shows signs of stabilisation, experts remain cautiously optimistic
National home sales show resilience with surge in actual activity in february 2023
Canada: The Canadian real estate market has been the subject of much discussion lately, with experts and economic analysts keeping a close eye on the trends. According to Yahoo Finance, Canada's housing market prices show signs of stabilisation, leading many to believe the market may have reached a bottom. However, this doesn't necessarily mean a smooth recovery is on the horizon.
Market Sentiments
Robert Hogue, an economist with the Royal Bank of Canada, notes that while sentiment in the real estate market has improved, it hasn't yet produced a recovery in activity. This is likely because there is still some uncertainty surrounding the market, particularly regarding the Bank of Canada's interest rate cuts and the potential for national price declines.
Cost projections
According to a recent Bloomberg survey, nearly half of Canadians expect real estate prices to rise over the next six months. However, this prediction of market instability has made some experts cautious about the future.
Growth potential
Despite this uncertainty, the Bank of Canada remains optimistic about the future of the Canadian housing market. They expect moderate growth in house prices over the next two years. However, some real estate officials have cited the possibility of a sharp increase as a potential upside risk to their inflation forecast.
Market's resilience
In February of this year, national home sales declined by 3.1% month-over-month. However, when unadjusted for seasonal fluctuations, actual activity surged 19.7% compared to February 2023; this surge reflects a rebound from historically low sales figures observed in February 2023, highlighting the market's resilience and return to a state close to the 10-year average.
Larry Cerqua, Chair of CREA, suggests heightened housing activity may be on the horizon. Potential buyers may await cues from the Bank of Canada or the release of spring listings before making any moves. The slight decrease in the national sales-to-new listings ratio and an uptick in new listings suggest that the market is poised for expansion while maintaining a balanced state.
Will the market stabilise?
With Prime Minister Trudeau's announcement of new home constructions, the Canadian real estate market will likely experience a rollercoaster ride in the coming months. However, many experts believe the market will stabilise by the end of the year.