RBC has just released their latest monthly housing market update entitled "Start of spring resale market uneven across Canada in March"
Here are some highlights of the report:
The burst of home resale activity that we expected to follow from the unusually sharp, weather-induced slowdown this winter was not in evidence across many of Canada's markets in March. Statistics released this morning by the Canadian Real Estate Association (CREA) showed uneven results last month with markets such as Calgary, Edmonton and Saskatoon showing solid resale increases between February and March on the one hand, and Vancouver, Winnipeg and Montreal registering declines on the other. Overall, March home resales rose by a modest 1.0% from February at the national level. However, the Canadian market had a stronger start to the spring season than in 2013, resulting in year-over-year growth in resales rising in March to 4.9% from 2.3% in February.
The acceleration in home price increases seen since last summer continued, although just barely. The year-over-year rise in the MLS Home Price Index (HPI) accelerated from 5.1% in February to 5.2% in March - still more than double the rate of 2% that prevailed in March 2013. Most of the upward pressure is centered in Calgary and Toronto.
A main characteristic of market dynamics of late has been the fairly weak expansion of supply (new listings). In fact, slow growth in 'quality' listings may be a prominent factor restraining the pace of resale in markets such as the Toronto area. In March, new listings in Canada rose by only 0.5% from February, thereby tightening the sales-to-new listings ratio slightly given that it was less than the 1.0% resale gain. That being said, at 0.53, the sales-to-new listings ratio is still consistent with balanced between demand and supply at the national level. This is also the case in the vast majority of local markets, with the exception of Calgary and Edmonton, which classify as sellers' markets.
Jacquie Paulovich | Mobile Mortgage Specialist |RBC Central Alberta |C: 403-340-9567 | F: 403-885-4484
To view, print and download the new report, click on the following link:
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