Market watchers will be interested in what the Royal Bank of Canada’s chief economists had to say this month — that the Canadian housing market had run its course and it appears “a cyclical bottom has been reached.”
RBC attributed this to increase in both activity and prices despite the fact that inventories remain low pretty much across the country.
“There were hints for some time the cyclical bottom would be reached this spring but April pretty much sealed the deal,” economists said in the banker’s market update. “Early results from real estate boards gave strong indications local markets turned a corner last month.”
The big cities led the way, as usual.
About Vancouver in particular, here’s what RBC had to say:
“Activity picked up solidly last month as more buyers stepped back into the market — likely sensing the correction has run its course. An influx of properties up for sale possibly added some excitement though the increase in new listings (which we estimate at 9% month-to-month on a seasonally adjusted basis) didn’t come close to the estimated 30+% jump in resales. Faster-rising demand than supply put heat on prices.
“After falling nearly 10% since its March 2022 peak, the area’s MLS HPI [Home Price Index] went up in the past two months, including a firm 2.3% month-to-month increase in April. Tighter demand-supply conditions will likely keep prices on an upward trajectory in the period ahead. But we continue to believe that extremely poor affordability will significantly limit the speed at which they will rise.”
So, there’s one economic real-estate outlook. As the year progresses, there will surely be more.