Recently CIBC economists Benjamin Tal and Katherine Judge took a closer look at the reset of Canada’s housing market. Their analysis contains a few records set during this downturn and a few things you might not know.Home sales had fallen for eight straight months before October brought a small uptick. Not only is that the longest stretch of falling sales on record, it is also the steepest, said the CIBC team. “And it’s not really over yet.”Article contentPrices are also setting records.
The economists say sellers continue to sit on the sidelines with hardly any signs of distressed selling so far. “The abnormal behaviour of supply this time around has, so far, worked to limit the magnitude of the price decline,” they said.Home sales might be slowing but the rental market has never been tighter, said Tal and Judge. With an estimated 700,000 people coming into Canada this year “demand for rental units is at a record high,” they said.
The CIBC team estimates that about a third of investors in this market were in negative cashflow territory before the pandemic. Those numbers will have swelled as interest rates climb.
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