RBC Monthly Housing Market Update reports Canada’s housing market inches closer to a cyclical bottom.
‘Home resales are now gradually stabilizing in most parts of the country after plunging through the spring and summer amid soaring interest rates. Nationwide activity even picked up slightly on a month-to-month basis for the second time in three months in December (up 1.3%). This is consistent with our view that a cyclical bottom is approaching—likely in early-2023.
It will take a little longer for prices to steady though. The MLS Home Price Index for Canada fell sequentially for the 10th-straight month in December (down 1.6% m/m). We think it will continue to slide until spring at the earliest as poor affordability continues to weigh heavily on buyers.’