A new report from an RBC economist claims that while sales in the Canadian housing market are slowing, the market is still likely to peak before rebalancing.
Robert Houge, an RBC senior economist, said that while fewer buyers are partaking in things like bidding wars, competition in the housing market is still going strong in Canada. Leading to high prices until some sort of market rebalancing.
Houge suggests that we could see a rebalance in late 2021, but that means prices won’t stabilize until a few months after that in 2022.
The economist has been looking at data from the Canadian Real Estate Association, which says that home prices in Canada were up 24.4 percent in May, a record-breaking increase, according to Livabl. However, the amount of sales has been declining since March as fewer new listings hit the market. Since the supply can’t keep up with the demand, the prices are still rising.
Overall, it seems like the next few months are still a seller’s market and buyers who can wait until 2022 might end up buying at a better time.