It is officially a buyer’s market in many parts of the GTA as the ratio of sales to new listings continues to slide amid an ongoing housing correction, a new report from a major Canadian bank says.
In a report released on Thursday, RBC assistant chief economist Robert Hogue said that while “demand-supply conditions look reasonably balanced nationwide” that is not the case in many of the country’s most expensive real estate markets in Ontario and British Columbia.
He said that in Toronto, Ottawa, Niagara Region, Hamilton, London, Victoria, Vancouver and the Fraser Valley the ratio of sales to listings is now hovering around 0.40, which is the threshold below where “buyers historically have had more sway on prices.”
Hogue predicts that because of that buyers “will succeed in further reversing some of the earlier outsized price gains in Ontario and BC in the near term,” even if the slide in prices starts to stabilize nationally where the ratio is closer to 0.50.
His report comes just two weeks after Re/Max warned that housing prices in the GTA could drop nearly 12 per cent in 2023.
“It’s no surprise to see some of the larger price declines taking place in these markets,” Hogue said of Ontario and BC. “Since the peak earlier this year, the MLS Home Price Index has plummeted in Cambridge (-21 %), London (-19%), Kitchener-Waterloo (-19%), Brantford (-18%), Hamilton-Burlington (-18%), Kawartha Lakes (-17%), Barrie (-17%), Chilliwack (-16%) and the Fraser Valley (-13%). Property values also fell markedly in the GTA (-12%) and to a lesser extent in the Greater Vancouver Area (-6 %).”
The average price of a home across all property types in the GTA peaked at $1,334,062 in February but has fallen by approximately 19 per cent