Taking May sales figures into account, the Bank of Nova Scotia said that while the month-over-month increase is an indicator of some recovery, “relative to February 2020 – the final pre-lockdown month – sales and listings were down 42% and 36%, respectively,” the bank said last week. “A national sales-to-new listings ratio of about 59% continued to indicate roughly balanced supply and demand, and the aggregate MLS Home Price Index (HPI) held steady on a year-over-year basis, as it did in April.”
Toronto-Dominion Bank mirrored these sentiments, saying that the May increase “only retraced about a third of activity lost between February and April, and sales remained at multi-year lows.”
Multiple predictions have pointed at steadily accumulating demand as a defining feature of the post-COVID-19 market, although RE/MAX is forecasting steady prices for much of the year.
Royal Bank of Canada diverged from these projections, saying that it is expecting “further broad-based weakening in the period ahead. … We believe downward price pressure will build in most markets in the coming months.”
“Rising supply will erode price support,” RBC said in a recent analysis. “The delay in spring listings will likely boost supply during the summer at a time when homebuyer demand will still be soft—albeit recovering. The eventual winding down of financial support programs is also poised to bring more supply to market later this year.”
MBN
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