Latest news with #RobertHogue
Global News
3 days ago
- Business
- Global News
These real estate markets might be showing signs of life, report suggests
After a slow year for real estate in Canada, with some experts describing the spring housing market as 'dead on arrival,' a new report suggests some markets are showing signs of life. A report by the Royal Bank of Canada released Monday said local real estate boards have indicated that home resales picked up in some Canadian markets in May. This was largely due to de-escalation of parts of the U.S. trade war on Canada, the report said. 'The de-escalation of tariffs has taken centre stage since May, alleviating some of the worst fears about the potential economic fallout even though recent doubling of steel and aluminum tariffs increases risks in some communities. We expect to get a clearer view in the coming months,' RBC economist Robert Hogue said in the report. Penelope Graham, mortgage expert at said tariffs have affected buyer confidence but 'cracks of hope' have begun to emerge. Story continues below advertisement 'From a short-term perspective, sales activity has started to pick up. This corresponds with the cracks of hope emerging in the trade scenario,' she said. Anne-Elise Cugliari Allegritti, spokesperson for Royal LePage, said, 'All in all, I think confidence is returning, at least for some Canadians. That's translated into the housing market a bit but in very, very small spurts.' Graham warned that the volatility has not entirely disappeared. 'There's still plenty of downside risks for the real estate market. If we continue to see declines in the jobs market, home sales will likely stay subdued, unless interest rates are cut dramatically,' she said. 1:58 New realtor trends emerging as housing market cools Which markets are picking up? The RBC report said the real estate markets in Toronto, Ottawa, Calgary, Edmonton, Fraser Valley, Saskatoon and Regina all showed some signs of life. Story continues below advertisement The report said that while U.S. President Donald Trump's trade war had 'paralyzed' the housing market in Toronto, home resales picked up 8.4 per cent from April to May. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy However, home prices in Toronto continue to remain low, down 4.5 per cent compared to this time last year. Calgary and Edmonton, too, saw housing activity pick up. 'The trade war likely caused some buyers to pause in recent months, but its cooling impact on demand in Calgary may have been limited — or even short-lived,' Hogue said, adding that housing activity picked up eight per cent from April to May in Calgary. Quebec markets have been bucking national housing trends, Allegritti said. 'The Quebec markets really stand out this year, in not only Greater Montreal but even in Quebec City and some of the other smaller markets in the province,' she said. Median prices for single-family homes and condo apartments in Montreal were up 8.6 per cent and 4.3 per cent, respectively, in May from a year ago — a touch slower than in April, the RBC report said. It added that in many markets, demand now looks sturdy. 'Prairie markets such as Edmonton, Saskatoon, Regina, and some in Quebec including Quebec City and the Atlantic region like St. John's, have held up so far — albeit not entirely unscathed from trade-induced anxiety,' the report said. Story continues below advertisement The ultra-luxury real estate market is also showing solid demand, international realty firm Sotheby's said. According to Sotheby's, five properties worth over $10 million were sold in the Greater Toronto Area in the first three months of 2025. Slower markets While markets in Toronto and the Fraser Valley are picking up, sellers in other parts of Ontario and British Columbia are struggling. 'It should also be noted that some hard-hit tariffed industries, such as manufacturing, are concentrated in these southern Ontario markets,' Graham said. Sellers in Vancouver are being forced to accept lower bids, the report said, as buyers seem to be in no urgency to buy. 'There remains little urgency for potential buyers to make a move in this still-fraught economic environment. Time is on their side with buying options increasing by the day and prices drifting lower,' the report said. Story continues below advertisement What should buyers and sellers do? Despite the uptick in activity, market conditions remain favorable for anyone looking to buy a home this summer. 'I don't have high expectations for the summer. That's a typically quiet time for the housing market across the country,' Allegritti said. 'We will probably see a pick up in the fall, which is typically a busier part time of the year in the housing market,' she said. Buyers can expect higher inventory, more choice and better ability to bargain for a deal, Graham said. 'There is an opportunity to buy a property at a lower price, and lower interest rates mean buyers will qualify for larger mortgage amounts. Buyers also have more leverage in softer markets and can ask for conditions, such as upon financing or inspection, that further benefit them,' she said. Story continues below advertisement For sellers, however, the market remains tricky. 'It's important to have realistic expectations when listing in a down market and to price your property accordingly. An agent who understands your neighbourhood and comparable sales, and who knows how to market your property effectively, can be an important ally,' Graham said.
Yahoo
20-05-2025
- Business
- Yahoo
Posthaste: Canada home prices are heading into correction territory
A home price correction is taking place in Canada, especially in the country's most expensive markets, say real estate watchers. Canada's composite MLS home price index fell for a fifth consecutive month in April, down 1.2 per cent from March and 3.6 per cent from the year before, said Robert Hogue, assistant chief economist at Royal Bank of Canada. 'Softening supply-demand conditions have triggered a price correction that could persist,' said Hogue in a report. Ontario is taking the brunt of it, with every market posting month-over-month declines. Toronto's composite home price index has fallen 6.2 per cent over five months, but other markets are taking even bigger hits. In London, Ont., prices are down 7.7 per cent, in Kitchener-Waterloo, 7.6 per cent, Niagara, 6.9 per cent and Hamilton, 6.5 per cent. British Columbia is also showing weakness with Vancouver and Fraser Valley posting 2.8 per cent composite price drop over four months. Condos are leading the price decline in both markets. Toronto's condo MLS home price index is now down 7.3 per cent annually, said Hogue, with Vancouver's down 2 per cent. 'Rising inventories have shifted market dynamics decisively in buyers' favour throughout Ontario and B.C., creating some of the most buyer-friendly conditions in decades,' said Hogue. Other markets in Alberta, Saskatchewan, Manitoba, Quebec and Atlantic Canada remain fairly tight and have been able to retain modest price growth. The good news is that the dampening effect of trade tension on home buying may be nearing its peak, said Hogue. National home sales steadied in April, down just 0.1 per cent from the month before after a sharp 19 per cent drop over the past four months. 'The U.S. administration's decision to spare Canada from additional tariffs last month could boost confidence and attract buyers in coming months,' he said. So far the Bank of Canada has had little to say about the housing market slowdown, but economists with Capital Economics think that the weakness is becoming harder to ignore. Even if the market stabilizes in coming months, Capital predicts the central bank will make a couple more interest rate cuts this year. to get Posthaste delivered straight to your a rebate goes a long way in the EV market. Today's chart shows how zero-emission new vehicle sales plunged 46 per cent in March and 41 per cent in February after both federal and Quebec governments paused their EV rebate programs in January, said Erik Johnson, senior economist at BMO Capital Markets. Quebec has since reinstated its rebates on April 1, but B.C.'s ended May 15. Quebec sales were down 67 per cent in March, but time will tell if the return of the rebate brings customers back. South the border EV sales went in the other direction, but higher prices from tariffs and the phasing out of EV tax credits in the Republicans' budget could slow sales by the end of the year. G7 finance ministers and Central Bank governors meet in Banff, Alberta, to discuss issues impacting global economic stability and growth ahead of the 2025 G7 Leaders' Summit, which will be held in Kananaskis, Alberta, from June 15 to 17. Today's Data: Canada inflation Earnings: The Home Depot Inc Federal debt isn't some abstract, distant problem, as mortgage borrowers may soon find out When riding the market whiplash, structured notes can smooth the journey 'Buy Canadian' boosts local beauty industry. Will tariffs end up reversing that? It can feel incredibly isolating when you are struggling to make ends meet and your bank or credit union is unable to approve your application for a debt consolidation loan. However, it's important to know that there are other effective strategies to help you regain control of your finances, many of which don't require borrowing more money. Mary Castillo walk us through them. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@ with your contact info and the gist of your problem and we'll find some experts to help you out while writing a Family Finance story about it (we'll keep your name out of it, of course). Want to learn more about mortgages? Mortgage strategist Robert McLister's Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won't want to miss. Plus check his mortgage rate page for Canada's lowest national mortgage rates, updated daily. Visit the Financial Post's YouTube channel for interviews with Canada's leading experts in business, economics, housing, the energy sector and more. Today's Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@ Developers lament construction costs in Canada, but it could be a lot worse Just when you thought Toronto's condo market couldn't get any worse … Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
