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With the en-masse cooling-off of Canadian housing markets coupled with interest rate hikes, sellers are increasingly finding themselves on slippery terrain, at least in markets like Ontario.What and Why?
RBC Chief Economist, Robert Hogue, confirms the dwindling grip of sellers on the housing market, even though buyers are yet to achieve pole position.
⚠ Home sales slid by 8.6% nationally between April-May, while new listings went up by 4.5%.
⚠ The sales-to-new-listings ratio is at 57.5%, the lowest since April, 2019.
⚠ The MLS (multiple listing service) Home Price Index also plunged by 0.8%, driven mostly by Ontario.
What This Means
Sizable declines in multiple zones like Huron-Perth, North Bay, Greater Toronto, and Cambridge.
There could be downward pressure on prices with rising mortgage rates, meaning housing price corrections could be around the corner - picture a 10-13% benchmark price decline for Ontario.
Guess who’ll call the shots then?