Canada's housing market is showing early signs of renewed momentum as first-time buyers gradually return, according to Anne-Elise Cugliari Allegritti, Vice-president, Research and Communications at Royal LePage.
Speaking with Canada's Entrepreneur, Allegritti said national housing prices remain largely flat and sales continue to trail last year's subdued levels. However, she said market sentiment is improving as consumer confidence slowly returns and more buyers decide they can no longer postpone purchasing a home.
According to Allegritti, activity that typically peaks during the spring market was delayed until May and June and is now extending into the summer. She said inventory in Toronto is being absorbed more quickly, while Vancouver is following a similar but slower trend. Sellers, she added, are generally not under financial pressure to accept steep discounts, helping keep prices relatively stable.
Allegritti attributed the renewed buyer activity to stabilizing interest rates, resilient employment, rising wages and a growing acceptance of ongoing economic uncertainty. Rather than waiting for ideal conditions, she said many Canadians are choosing to move forward with long-delayed housing plans.
Royal LePage has raised its national aggregate home price forecast for the year from one per cent to two per cent. Allegritti said stronger-than-expected price resilience in the Greater Toronto Area and continued supply shortages across the Prairies and Quebec contributed to the revised outlook. While the company does not issue a national sales forecast, she expects the second half of the year to be more active than the first.
Allegritti also noted that the affordability gap between Toronto and Vancouver and several secondary markets has narrowed over the past few years as cities such as Calgary, Edmonton, Halifax and communities across Quebec experienced stronger price growth.
Looking ahead, she said the final wave of homeowners renewing ultra-low-rate mortgages is expected over the next 12 to 18 months. Despite concerns, Allegritti said Canada's historically low mortgage default rate and stringent lending standards have helped most borrowers remain financially stable.
The full Royal LePage report with regional breakdown can be found here.