In August, home resales in the GTA fell by an additional 1.0 per cent on a seasonally adjusted basis \u2013 reversing the spring rebound by about two-thirds. RBC attributes the slowdown to buyer sentiment rather than a lack of available properties. <\/p>\n\n\n\n
New listings and inventories rose noticeably over the last five months, including during August. However, buyers appear wary to take the leap while facing high interest rates, poor affordability and a softening economy. <\/p>\n\n\n\n
Despite the challenges, demand-supply conditions have swiftly rebalanced, with sales-to-new-listings ratios now nearing buyers\u2019 market territory. The shift is beginning to weigh on prices, which declined by a meagre 0.1 percent \u2013 though it\u2019s worth noting that\u2019s the first recorded overall price decline in the GTA since February. <\/p>\n\n\n\n
RBC expects prices to remain relatively stagnant for the time being. <\/p>\n\n\n\n Montreal <\/strong><\/p>\n\n\n\n In Montreal, a growing supply of available homes boosted transaction flows. New listings increased for the fourth time in the last five months during August \u2013 up more than 10 per cent according to RBC\u2019s estimate. Home resales exceeded last year\u2019s levels by 3.8 per cent.<\/p>\n\n\n\n Despite more sellers entering the Montreal market, demand-supply remains tight, leaving modest but uneven support for property values. In August, the median price for a single-detached home increased by 1.1 per cent compared to July, while condo apartment prices fell by 0.5 per cent. Properties located on the Island of Montreal generally recorded larger appreciation compared to Laval and the North and South Shores. <\/p>\n\n\n\n Vancouver<\/strong><\/p>\n\n\n\n Buyer caution seems to have dampened the activity seen in Vancouver this spring. Buyers, for the most part, pulled back during the summer after back-to-back rate hikes \u2013 especially during August. RBC estimates that resales fell more than 6 per cent on a month-over-month seasonally adjusted basis. <\/p>\n\n\n\n Despite a growing number of homes being added to the market since April, demand hasn\u2019t been spurred. Homes listed for sale reached a 15-month high in August, but buyer sentiment remained strongly apprehensive, thus balancing the market and allowing prices to slip. <\/p>\n\n\n\n Vancouver\u2019s aggregate MLS HPI fell slightly between July and August, marking the first decline since March. RBC expects buyer sentiment to remain relatively unchanged through the fall season, likely keeping prices on a flat trajectory for the foreseeable future. <\/p>\n\n\n\n Calgary <\/strong><\/p>\n\n\n\n While many other key markets saw prices begin to slip and buyers take a step back, Calgary remains hotter than ever. <\/p>\n\n\n\n RBC estimates that home resales in August increased by another 10 per cent on a seasonally adjusted basis. While growing supply has contributed to these gains, it has done little to alleviate market tightness as skyrocketing demand continues to outpace housing availability. <\/p>\n\n\n\n Property values in Calgary maintained strong upward momentum as a result. By the end of August the aggregate MLS HPI rose another 1.0 per cent month-over-month, marking a 7.9 per cent increase on an annual basis \u2013 the largest advance among major markets in Canada.<\/p>\n\n\n\n For the time being, RBC expects explosive population growth to continue causing competition in the Calgary market.<\/p>\n\n\n\n![\"\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2023\/09\/Screen-Shot-2023-09-11-at-2.53.37-PM.jpg\")
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