The high-flying Canadian housing market ride could soon slow down next year.
According to RBC’s Macroeconomic Outlook report, the number of Canadian home sales will decline by 20 percent in 2022. However, even with this decline, sales will be above the 10-year average, says the report.
While prices will still continue to increase, the rate will be much more average, according to RBC’s report.
“Home resales continue to transition toward more normal levels after reaching extreme — and clearly unsustainable — highs earlier this year,” says the report. “A number of factors including opportunities for households to spend on other goods and services as the economy reopened underpinned the easing in sales activity in recent months.”
RBC’s report also cites the importance of increasing the current supply of homes across the country in order to help the market stabilize.
Source: RBC Macroeconomic Outlook report