Written by Breck Hapner
Canada’s real estate market currently holds a quixotic position as the Canadian Real Estate Association lowered its sales forecast for 2023, while Scotiabank Economist Derek Holt suggested that forward guidance provided by the Bank of Canada “deserves a place on the fiction shelves at your favorite bookstore or the virtual equivalent.”
It’s not often you will hear an accredited Canadian economist referring to a revised mortgage rate report as pure fiction, but there are some underlying layers present that need to be taken into consideration. Also, in addition to expected housing market sales declines and mortgage rate hikes, average rental rates have hit an all-time high and the Office of the Superintendent of Financial Institutions, the banking regulator, is trying to reign in 90-year amortizations.
The Last Word (For Now)
All this being said, and to end on a somewhat more positive and less perplexing note, according to the July 14th, 2023 CREA housing market statistics, “national home sales in Canada experienced a month-over-month increase of 1.5 percent in June. This growth is slightly smaller than the previous months of April and May, indicating a gradual shift in the market.”
Larry Cerqua, Chair of CREA, stated, “Housing markets appear to be stabilizing heading into the summer following some big ups and downs over the last year.”
In our July recap, Haven will take a further look at the numbers: how Canada’s housing market is reacting to prevailing economic factors influencing real estate.