Sellers are 'back in the driver's seat' in Toronto's housing market, RBC says
A housing correction that RBC once called ‘historic’ appears to have run its course and sellers are now “back in the driver’s seat in most major markets,” a new report from the bank suggests.
In a report published this week, RBC Senior Economist Robert Hogue said that “spring 2023 increasingly looks like the turnaround point for Canada’s housing market after a year-long slump,” with home sales across Canada rising 11.3 per cent month-over-month in April.
He said that the average benchmark price also increased in about three-quarters of all markets tracked by the bank last month, including in Toronto where prices rose 2.4 per cent to an average of $1.1 million.
Prices were up 5.4 per cent month-over-month in Hamilton and 3.9 per cent in Kitchener-Waterloo.
"Earlier tentative signs of a turnaround in Toronto and Vancouver were confirmed in a big way in April," the report notes. "Home resales jumped 27 per cent and 25 per cent month over month, respectively, rolling back roughly one-quarter of the correction in one go. It appears buyers are quickly regaining confidence in both markets now that the Bank of Canada has paused its aggressive rate hike campaign."
RBC had said as recently as December that the GTA had become a buyer’s market, despite "demand-supply conditions looking reasonably balanced nationwide."
That, however, appears to have changed.
The average price of a Toronto home was still down 7.8 per cent year-over-year in April, according to the latest data from the Toronto Regional Real Estate Board. But prices have now risen in two consecutive months.
"April's widespread vigour is a surprise to us. While we did expect the market to reach its cyclical bottom this spring, we thought it would take a while for the heat to return. Our view was—and remains—that the significant loss of affordability in the past year would keep buyers timid for some time," Hogue wrote.
"First-time buyers, in particular, continue to face major hurdles. Perhaps soaring immigration and a boiling hot rental market are becoming the primary driving forces fueling homebuyer demand. In which case, we could see prices extending April’s gains—possibly materially."
The average price of a Toronto home across all property types peaked at $1,334,062 in February 2022 before dropping to a recent low of $1,037,542 amid an aggressive campaign to push up the cost of borrowing.
The average price of a GTA home in April was up about 11 per cent from the market’s low point ($1,153,269.)
CTVNews.ca Top Stories
NDP calls out Conservatives for effort to squash pharmacare legislation
The federal New Democrats are calling out Conservative Leader Pierre Poilievre and his party for trying to block the bill that could pave the way for millions of Canadians to access birth control and diabetes coverage.
Stamp prices rise for the third time in five years amid financial woes for Canada Post
Canada Post is increasing stamp prices for the third time since 2019, a move the Crown corporation says is a "reality" of its sales-based revenue structure.
Winnipeg man admits to killing four women, argues he's not criminally responsible
Defence lawyers of Jeremy Skibicki have admitted in court the accused killed four Indigenous women, but argues he is not criminally responsible for the deaths by way of mental disorder – this latest development has triggered a judge-alone trial rather than a jury trial.
An El Nino-less summer is coming. Here's what that could mean for Canada
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
Mediterranean staple may lower your risk of death from dementia, study finds
A daily spoonful of olive oil could lower your risk of dying from dementia, according to a new study by Harvard scientists.
A subset of Alzheimer's cases may be caused by two copies of a single gene, new research shows
For the first time, researchers have identified a genetic form of late-in-life Alzheimer’s disease — in people who inherit two copies of a worrisome gene.
B.C. court date set for 3 accused of murdering Sikh activist Hardeep Singh Nijjar
Three suspects accused of murdering British Columbia Sikh activist Hardeep Singh Nijjar last year are scheduled to appear in court in Surrey on Tuesday.
Ontario MPP asked again to leave Ontario legislature over keffiyeh, Speaker loosens ban
An Ontario MPP was asked again to leave the Ontario legislature on Monday for wearing a keffiyeh, a garment that was banned by the Speaker last month due to its political symbolism.
WATCH Avian flu: Risk to humans grows as outbreaks spread, warns expert
H5N1 or avian flu is decimating wildlife around the world and is now spreading among cattle in the United States, sparking concerns about 'pandemic potential' for humans. Now a health expert is urging Canada to scale up surveillance north of the border.