An RBC economist says there are signs housing prices “may be peaking in Alberta” as the Home Price Index falls in both Calgary and Edmonton.
Housing markets across Canada continued to cool off last month as interest rates rose and Robert Hogue, assistant chief economist at RBC, said there were signs they may have reached a peak in Alberta in a recently-published report.
“In the case of Edmonton, this took place amid demand-supply conditions swinging sharply out of seller’s market territory in the past two months,” Hogue stated. “We think recent developments point toward more stable price trends, and not necessarily a material correction.”
He also said he believes demand in the province will remain high due to the relative affordability of the markets.
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National home sales fell 8.6% between April and May, while new listings rose 4.5% month-over-month, according to data from the Canadian Real Estate Association (CREA). The sales-to-new listings ratio dropped to 57.5%–the lowest level since April 2019.
Ontario accounted for the majority of the declines, where buyers are “clearly on the defensive.” Several municipalities posted declines greater than 3.5%.
“Peak-to-trough, we think benchmark prices could decline around 10% nationwide.”