There are signals that the housing market is finding some sort of equilibrium. At least that’s the view from the window at the economics unit in RBC Royal Bank.
A report this week says the resale market for houses has started to stabilize after a free fall in some parts of Canada. They, like many others, have noted that inventory, or listings, is limited so buyers have fewer options to examine.
The reason for the low listing numbers is dropping prices, making sellers reluctant to put their properties on the market even if there is less competition for buyer attention.
And the prices have been moving downward. London, Ontario, for example, has seen a 25 per cent drop while most places in Ontario and BC have recorded declines that exceed the national average of a 16 per cent pull back.
But those prices have sparked activity as the number of units changing hands has finally begun to increase. So, we are seeing more transactions. Vancouver was up 15 per cent, Toronto eight per cent and Regina was recognized for its seven per cent gain.