[Royal LePage] Sluggish Start to 2019 Provides Silver Lining for First-time Home Buyers in the Country's Largest Cities
by Joel Bates | April 8, 2019
According to the Royal LePage House Price Survey, powered by its sister company RPS Real Property Solutions’ Data and Analytics, Canada’s residential real estate market showed slowing year-over-year price growth in the first quarter of 2019. Early in 2018, Canada experienced the most significant housing correction since the 2008 financial crisis. Markets showed signs of recovery late in the year, yet the figures for early 2019 suggest that the market has once again slowed.
Royal LePage expects national home prices to stay relatively flat throughout the 2019 spring market, with the national aggregate price of a home increasing 1.0 percent over the next three months.
The forecast for several larger Canadian cities has shown noticeable signs of slowing and home prices in Great Vancouver are expected to fall 1.4 percent over the next quarter. On the positive side, both Montreal and Ottawa are expected to post higher price appreciation and are forecast to rise 2.8% to $482,459 and 5.5% to $406,332 respectively.
“We are expecting this to be a sluggish year overall in Canada’s residential real estate market, with the hangover from the 2018 market correction and weaker economic growth acting as a drag on home price appreciation, balanced by lower for longer interest rates,” said Phil Soper, president and CEO, Royal LePage. “There is a silver lining here. This slowdown gives buyers, and first-time buyers, an opportunity to buy real estate in our country’s largest cities.”
There is a chance that the activity levels in the spring of 2019 for first-time buyers will be reduced until the new First-Time Home Buyer Incentive kicks-in this September.
The Royal LePage House Price Survey provides information on the three most common types of housing in Canada, in 63 of the nation’s largest real estate markets. Housing values in the House Price Survey are based on the Royal LePage National House Price Composite, produced quarterly through the use of company data in addition to data and analytics from its sister company, RPS Real Property Solutions, the trusted source for residential real estate intelligence and analytics in Canada. Commentary on housing and forecast values are provided by Royal LePage residential real estate experts, based on their opinions and market knowledge.
View the Royal LePage House Price Survey.