After a prolonged home-buying frenzy lead to month after month of record-high sales all over the country, the Canadian real estate market is expected to slow down significantly next year.
RBC released its Macroeconomic Outlook for September and in it, predicted that the number of Canadian home sales will decline by 20% in 2022. Even with this sizeable drop, though, the number of sales would still be above the 10-year-average.
Stiff competition caused real estate prices all across the county to skyrocket over the past year, but RBC is predicting a slowdown in this area as well. Although prices will continue to increase, the bank foresees it being at a much more modest pace.
“Home resales continue to transition toward more normal levels after reaching extreme — and clearly unsustainable — highs earlier this year,” the report reads. “A number of factors including opportunities for households to spend on other goods and services as the economy reopened underpinned the easing in sales activity in recent months.”
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In agreement with what many housing experts have said over the past year, RBC underscored the importance of an increased supply of homes coming onto the market so that prices can stabilize.