As reported by Julie Gordon and Andrea Hopkins of Reuters, the latest figures from the Canadian Real Estate Association (CREA) revealed that residential sales volume (seasonally adjusted) in Vancouver fell by 0.3 per cent in March and 1.0 per cent last month, while Toronto sales declined by 1.8 per cent in March and stood flat in April.
“There are reasons to believe maybe we’ve hit the peak in those two markets,” CREA chief economist Gregory Klump told reporters on Friday (May 27).
Klump and various other observers pointed at the dearth of supply—fuelled by home owners who are hesitant to trade up—as a main factor driving this slump.
“It’s a vicious circle. As people consider selling, it might be very difficult to find a home to meet their needs. We haven’t seen as many listings as you would expect based on price growth,” Toronto Real Estate Board director (market analysis) Jason Mercer said.
Klump still expects Canada’s leading housing markets to remain strong, however, as over the past five years, prices have grown by 41 per cent in Vancouver and 45 per cent in Toronto.
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After nearly a decade of red-hot growth, the Canadian housing boom might soon come to an end—and not in an explosive bust, but in a sluggish whimper.