Canada's housing market is showing signs of a shift as sellers re-enter the market in major cities, but a full recovery hinges on significant interest rate reductions, according to a report by RBC Economics.

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Sellers Test the Spring Waters

• Increase in Listings: Major cities like Toronto (5.9% increase), Vancouver (15% increase), and Montreal saw a significant rise in new listings in April compared to March.
• Potential Reasons: Some sellers who held off in the fall market due to lower demand are re-entering, while others facing high interest rates might be motivated to sell.

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Buyers Remain Wary

• Affordability Squeeze: High interest rates continue to impact affordability, leading to a decline in home resales despite the rise in listings.
• RBC Prediction: The report predicts buyer activity will remain low until several interest rate cuts are implemented.

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Regional Market Updates

• Toronto: Home resales dipped in April despite more listings, easing pressure on buyers but causing prices to stagnate.
• Montreal: After strong gains earlier in the year, the Montreal market saw a slowdown in activity in April. Tight inventory and high interest rates are likely contributing factors.
• Vancouver: A surge in listings led to a slight increase in sales, but prices remained flat, potentially due to the influx of supply.
• Calgary: This market remains a seller's advantage with tight supply limiting buyer options.  However, demand is strong, resulting in the highest annual price growth (9.9%) among major markets.

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Interest Rate Cuts Key to Recovery

• RBC Forecast: The report predicts a full market recovery is unlikely until interest rates fall considerably. RBC expects these cuts to happen in the second half of 2024.

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Looking for Local Expertise?

While the national market shows signs of adjustment, local factors can significantly impact your experience. Contact a Coldwell Banker Horizon Realty expert to discuss the specifics of your area and your real estate needs.

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Source: RBC