We now have the first signs that higher interest rates are starting to change consumer attitudes and it is in the big-ticket arena of residential real estate.
The number of houses changing hands is beginning to slow down. This is especially evident nationally, particularly in expensive markets such as Toronto and Vancouver. Toronto, for example, saw sales fall 26 per cent last month.
Even here in Saskatchewan, we saw something of a slowdown. The provincial real estate association attributes the pull-back to both higher interest rates and to shrinking supplies, which are limiting the selection available to buyers. Listings as well as sales are receding through much of Saskatchewan, especially in major cities.
In big cities across Canada, according to a report by RBC Royal Bank, residential real estate is moving from a sellers’ market to neutral. But it is verging on becoming a buyer’s market in Toronto. Meanwhile, in places like Vancouver, Calgary and Edmonton are still tilted towards sellers but it is clear the shift is becoming quite noticeable.
