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RBC On The Abrupt Rebalancing In Canadian Housing

CANADA
  • The Bank of Canada’s rate hikes since March and guidance for more ahead is being sharply felt in Canadian real estate, with Toronto, Vancouver, Montreal, Ottawa and Hamilton all seeing significant pullbacks in home resale activity in May.
  • Inventories are on the rise in some markets, quickly easing what were extremely tight demand-supply conditions from a few months ago as most major markets return to balanced territory in May according to sales and new listings.
  • House prices have started to move lower and RBC expect further reversal of the massive pandemic-era gains ahead.
  • Toronto is of note, with conditions swinging from close to the tightest on record to nearly as loose as they were during the 2017 correction in just three months.

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