Most major cities mark sales declines in February
Canada's resale real estate market “isn't out of the woods yet,” according to a recent report by RBC Economics. The study, published in March, stated most major cities saw month-over-month sales declines in February, including Calgary, where sales fell about eight per cent.
That said, Calgary remains a hot resale market, only less so than previously, RBC stated, noting that it is one of the few markets in Canada with falling inventory, down about 13 per cent in February, year over year.
Edmonton's inventory was also down about 13 per cent while its sales surged 53 per cent in February, year over year.
In contrast, Calgary was in the middle of the pack among cities regarding percentage-wise increases in activity. Sales here rose 22 per cent compared with last year. By comparison, Montreal sales were up 30 per cent in February, and sales in the Fraser Valley in British Columbia grew 38 per cent.
Sales in Vancouver and Toronto were up 14 and 18 per cent, respectively.
Yet Calgary led the nation for year-over-year price gains, up 10 per cent, followed by the Fraser Valley and Vancouver up nearly five per cent. Edmonton prices gained nearly four per cent while Toronto had the lowest increase at less than one per cent.
Edmonton and Calgary were the only cities with sales-to-new-listings ratios favouring sellers, or above 60 per cent. Calgary's ratio was 80 per cent while Edmonton's was 74 per cent in February. Other markets had ratios between 40 and 60 per cent indicating balance between sellers and buyers.
RBC Economics concluded that sales growth in larger centres will continue to be hampered by high prices particularly if interest rates remain at their current levels.
More broadly, Canada's resale market is unlikely to see sustained sales growth in the coming months until mortgage interest rates fall even more, as expected, later this year, the study added.