Canada’s hot housing market is slowly cooling as buyer attention shifts from wanting more space to the “new normal,” now that the ongoing COVID-19 pandemic is beginning to wind down in some respects.
According to Reuters, Canadian home sales fell for the third month in a row in Canada and currently sit 25 percent below March’s peak. The average selling price of a home currently sits at $679,000, down 5.3 percent since March’s high.
While COVID-19 related lockdowns resulted in people seeking larger houses and more living space, with home prices surging 40 percent year-over-year and eager buyers offering well over asking price, it seems that’s no longer the case.
As major Canadian cities re-opening, spending across hotels, restaurants, travel and more has increased, according to RBC’s COVID Consumer Spending Tracker. In general, Canadians are starting to reconsider how much they want to spend on a home and where they want to live. In turn, this has resulted in living in the city becoming a more appealing option for some Canadians.
Many potential home-buyers are also taking a “wait and see” approach, according to Reuters’ reporting. However, a potential collapse isn’t impending and instead the market will experience a “softer landing than we’ve had in the past,” according to an interview with real-estate agent Lowell Martens.
It’s expected that the real-estate market will begin to kick back up in the fall as that’s when people typically list their homes and inventory builds.