27
Sep
Has the Canadian Real Estate Market Peaked?
Has the Canadian Real Estate Market Peaked?
In recent months, the consensus has been that the Canadian real estate market may have reached its peak. Some markets continue to enjoy record-breaking gains. Still, the broad-based trends spotlight a crucial development: the sector may be returning to some semblance of normalcy during these uncertain times.
Whether you are of the opinion that the boiling Canadian real estate market has been reduced to a simmer, or that it is poised for a steep correction, it’s always prudent to analyze the numbers. In this case, the late summer figures that are emerging may suggest one thing: the peak happened months ago.
Supply continues to be an issue in the Canadian real estate market. The number of new residential listings fell by 8.8 percent month-over-month in July, with new housing stocks down three-quarters across all markets. The largest decreases were situated in Vancouver, Calgary, the Greater Toronto Area (GTA) and Montreal.
According to Canada Mortgage and Housing Corporation (CMHC), housing starts totalled 286,620 units in July, down from 293,085 units in June. Single-detached urban starts jumped by 7.1 percent, but multiple urban starts tumbled by 3.1 percent. Rural starts were relatively flat at a little more than 23,000 units.
Contact Sonya & Dolores & our award-winning team today to see how we can help you!
