{"id":1017,"date":"2023-04-10T00:37:21","date_gmt":"2023-04-10T00:37:21","guid":{"rendered":"https:\/\/www.realestateleads.ca\/blog\/?p=1017"},"modified":"2023-09-25T21:03:07","modified_gmt":"2023-09-25T21:03:07","slug":"sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc","status":"publish","type":"post","link":"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/","title":{"rendered":"Sluggish Start to Canada\u2019s Spring Housing Market Forecasted by RBC"},"content":{"rendered":"
<\/div>\r\n
\r\n
\"\"<\/figure>\r\n<\/div>\r\n\r\n\r\n\r\n

One of the things you can pretty much count on from one year to the next with the housing market in Canada is that sales will always pick up in Spring. People have wondered why that is, but it may be as simple as folks being enamored with the warmer and sunnier weather and imagining what it might be like to have a backyard or rooftop patio for the upcoming summer season. The cyclical nature of that factors into sellers sell homes and from the buyer end it\u2019s more prospective homeowners who are buying homes rather than investors at this time.<\/p>\r\n\r\n\r\n\r\n

Real Estate Agents will have expectations based around the trend too, and anytime those expectations don\u2019t come to be then there may be something of a disappointment with how many homes that realtor is selling or how many new clients they\u2019re putting in homes. Real Estate is an unpredictable business at the best of times, and even if you considered the overheated market of \u201920 to \u201922 to be one of those best of times. <\/p>\r\n\r\n\r\n\r\n

But even when a downturn of any sort is the reality our online real estate lead generation system<\/a> here at Real Estate Leads<\/a> is an excellent way to help realtors weather the doldrums in the real estate business that do come from time to time. And that\u2019s just what we may be in the beginning of right now for Spring 2023 as home sales are not picking up the way they used to at this time of the year.<\/p>\r\n\r\n\r\n\r\n

That\u2019s what we\u2019ll dig deeper into with our blog entry here this week based on a report from the Royal Bank of Canada.<\/p>\r\n\r\n\r\n\r\n

Interest Rate Influences<\/strong><\/h3>\r\n\r\n\r\n\r\n

It is Canada\u2019s largest bank, and it is expecting a slow start to the spring housing market based on the prediction that higher interest rates will continue to dissuade many buyers even though there\u2019s been a considerable drop in prices.<\/p>\r\n\r\n\r\n\r\n

The reality is a 16% drop in the benchmark home price over the last year, but the $704K CAD average is still darn close to 30% higher than it was at this time in 2020. The consensus is that in order to get home affordability back \u2018in check\u2019 as much as that is possible conceptually is to have prices may have to fall further or mortgage rates will need to see a drop.<\/p>\r\n\r\n\r\n\r\n

Insufficient supply is also definitely a factor. There really isn\u2019t as much in the way of home inventory on the market that\u2019s available for these would-be homeowners to buy. Newly-listed properties were down 8% in February compared with the month before, and at the same time the inventory of available homes dipped to the lowest it\u2019s been in the last 4+ months according to the CREA.<\/p>\r\n\r\n\r\n\r\n

Then there\u2019s also been a noticeable slowdown in consumer activity and business investment that is made in response to the higher interest rates. Something that was bound to happen one way or another when the Bank of Canada moved fast and pronouncedly when bumping up its overnight lending rate from 0.25 to 4.5%<\/p>\r\n\r\n\r\n\r\n

Uncertainty from Slowdown<\/strong><\/h3>\r\n\r\n\r\n\r\n

It would seem that buyers of all sorts remain apprehensive because the slowdown is still here and continuing, even if it has weakened. It certainly is being seen in volumes, and when you ask around in the business the one term you hear over and over again is buyer uncertainty. It\u2019s going to be an undermining factor all through this spring real estate season it seems, and a lot of this goes back to early March when the Canadian central bank kept its key rate untouched for the first time in a year.<\/p>\r\n\r\n\r\n\r\n

The stated logic for that is that policymakers need time to assess how consumers are adjusting to higher borrowing costs, and that part of it does make sense. Mortgage rates from both RBC and TD are in the vicinity of 5.5% for borrowers who want to lock in their costs for 5 years. Variable mortgages will be more expensive than that, for obvious reasons and that is another deterrent for anyone who feels that\u2019s the only realistic way for them to go with taking on a mortgage. <\/p>\r\n\r\n\r\n\r\n

The CIBC has the highest share of domestic residential mortgages and HELOCS in Canada with 54% of those net loans. RBC is second with 51% of them, but the significant stat here is that around 78% of RBC\u2019s Canadian housing exposure remains uninsured. The uninsured portfolio has a low loan-to-value ratio of 50 per cent, however, which should in theory put in place a buffer that should absorb some of these house-price declines.<\/p>\r\n\r\n\r\n\r\n

__<\/p>\r\n\r\n\r\n\r\n

Sign up for Real Estate Leads here<\/a> and receive a monthly quota of qualified buyer and \/ or seller leads that are always made available to you only. These leads are for potential home sellers and buyers who live in the area where you work as a real estate agent, and while other realtors in your city or town may also be with real estate leads they will not receive the same leads you do. What this does is create a unique opportunity for you to reach out to these people first and promote yourself as the type of realtor they need working for them.<\/p>\r\n","protected":false},"excerpt":{"rendered":"

One of the things you can pretty much count on from one year to the next with the housing market in Canada is that sales will always pick up in Spring. People have wondered why that is, but it may be as simple as folks being enamored with the warmer and sunnier weather and imagining […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1017","post","type-post","status-publish","format-standard","hentry","category-general-topics"],"yoast_head":"\nSluggish Start to Canada\u2019s Spring Housing Market Forecasted by RBC - Real Estate Leads Blog<\/title>\n<meta name=\"description\" content=\"Sluggish Start to Canada\u2019s Spring Housing Market Forecasted by RBC - Real Estate Leads Blog\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sluggish Start to Canada\u2019s Spring Housing Market Forecasted by RBC - Real Estate Leads Blog\" \/>\n<meta property=\"og:description\" content=\"Sluggish Start to Canada\u2019s Spring Housing Market Forecasted by RBC - Real Estate Leads Blog\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/\" \/>\n<meta property=\"og:site_name\" content=\"Real Estate Leads Blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-04-10T00:37:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-25T21:03:07+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.realestateleads.ca\/blog\/wp-content\/uploads\/2017\/02\/AdobeStock_14032743-1024x768.jpeg\" \/>\n<meta name=\"author\" content=\"Real Estate Leads\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Real Estate Leads\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/\",\"url\":\"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/\",\"name\":\"Sluggish Start to Canada\u2019s Spring Housing Market Forecasted by RBC - Real Estate Leads Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.realestateleads.ca\/blog\/wp-content\/uploads\/2017\/02\/AdobeStock_14032743-1024x768.jpeg\",\"datePublished\":\"2023-04-10T00:37:21+00:00\",\"dateModified\":\"2023-09-25T21:03:07+00:00\",\"author\":{\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/#\/schema\/person\/413386b258baa1b3e7d5709228082e86\"},\"description\":\"Sluggish Start to Canada\u2019s Spring Housing Market Forecasted by RBC - Real Estate Leads Blog\",\"breadcrumb\":{\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/#primaryimage\",\"url\":\"https:\/\/www.realestateleads.ca\/blog\/wp-content\/uploads\/2017\/02\/AdobeStock_14032743-1024x768.jpeg\",\"contentUrl\":\"https:\/\/www.realestateleads.ca\/blog\/wp-content\/uploads\/2017\/02\/AdobeStock_14032743-1024x768.jpeg\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.realestateleads.ca\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Sluggish Start to Canada\u2019s Spring Housing Market Forecasted by RBC\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/#website\",\"url\":\"https:\/\/www.realestateleads.ca\/blog\/\",\"name\":\"Real Estate Leads Blog\",\"description\":\"Welcome to RealtorLeads Blog\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.realestateleads.ca\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/#\/schema\/person\/413386b258baa1b3e7d5709228082e86\",\"name\":\"Real Estate Leads\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.realestateleads.ca\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/4801655c68dae8c9486a6bdf5e4c6505?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/4801655c68dae8c9486a6bdf5e4c6505?s=96&d=mm&r=g\",\"caption\":\"Real Estate Leads\"},\"url\":\"https:\/\/www.realestateleads.ca\/blog\/author\/admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Sluggish Start to Canada\u2019s Spring Housing Market Forecasted by RBC - Real Estate Leads Blog","description":"Sluggish Start to Canada\u2019s Spring Housing Market Forecasted by RBC - Real Estate Leads Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/","og_locale":"en_US","og_type":"article","og_title":"Sluggish Start to Canada\u2019s Spring Housing Market Forecasted by RBC - Real Estate Leads Blog","og_description":"Sluggish Start to Canada\u2019s Spring Housing Market Forecasted by RBC - Real Estate Leads Blog","og_url":"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/","og_site_name":"Real Estate Leads Blog","article_published_time":"2023-04-10T00:37:21+00:00","article_modified_time":"2023-09-25T21:03:07+00:00","og_image":[{"url":"https:\/\/www.realestateleads.ca\/blog\/wp-content\/uploads\/2017\/02\/AdobeStock_14032743-1024x768.jpeg"}],"author":"Real Estate Leads","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Real Estate Leads","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/","url":"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/","name":"Sluggish Start to Canada\u2019s Spring Housing Market Forecasted by RBC - Real Estate Leads Blog","isPartOf":{"@id":"https:\/\/www.realestateleads.ca\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/#primaryimage"},"image":{"@id":"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/#primaryimage"},"thumbnailUrl":"https:\/\/www.realestateleads.ca\/blog\/wp-content\/uploads\/2017\/02\/AdobeStock_14032743-1024x768.jpeg","datePublished":"2023-04-10T00:37:21+00:00","dateModified":"2023-09-25T21:03:07+00:00","author":{"@id":"https:\/\/www.realestateleads.ca\/blog\/#\/schema\/person\/413386b258baa1b3e7d5709228082e86"},"description":"Sluggish Start to Canada\u2019s Spring Housing Market Forecasted by RBC - Real Estate Leads Blog","breadcrumb":{"@id":"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/#primaryimage","url":"https:\/\/www.realestateleads.ca\/blog\/wp-content\/uploads\/2017\/02\/AdobeStock_14032743-1024x768.jpeg","contentUrl":"https:\/\/www.realestateleads.ca\/blog\/wp-content\/uploads\/2017\/02\/AdobeStock_14032743-1024x768.jpeg"},{"@type":"BreadcrumbList","@id":"https:\/\/www.realestateleads.ca\/blog\/sluggish-start-to-canadas-spring-housing-market-forecasted-by-rbc\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.realestateleads.ca\/blog\/"},{"@type":"ListItem","position":2,"name":"Sluggish Start to Canada\u2019s Spring Housing Market Forecasted by RBC"}]},{"@type":"WebSite","@id":"https:\/\/www.realestateleads.ca\/blog\/#website","url":"https:\/\/www.realestateleads.ca\/blog\/","name":"Real Estate Leads Blog","description":"Welcome to RealtorLeads Blog","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.realestateleads.ca\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.realestateleads.ca\/blog\/#\/schema\/person\/413386b258baa1b3e7d5709228082e86","name":"Real Estate Leads","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.realestateleads.ca\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/4801655c68dae8c9486a6bdf5e4c6505?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/4801655c68dae8c9486a6bdf5e4c6505?s=96&d=mm&r=g","caption":"Real Estate Leads"},"url":"https:\/\/www.realestateleads.ca\/blog\/author\/admin\/"}]}},"_links":{"self":[{"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/posts\/1017"}],"collection":[{"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/comments?post=1017"}],"version-history":[{"count":0,"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/posts\/1017\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/media?parent=1017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/categories?post=1017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.realestateleads.ca\/blog\/wp-json\/wp\/v2\/tags?post=1017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}