The North American real estate market is undergoing significant changes in response to the current economic environment. As reported by Canadian Mortgage Trends, RBC saw a 40% decline in mortgage originations in the first quarter of 2023. This can be attributed to the recent rate hike cycle by the Bank of Canada, which has led to a slowdown in housing and development activity.
Slowing Real Estate Market
In the United States, the housing market has also seen a cooling down in recent months, according to an article in The Economist. While there is no indication of a housing market collapse, the article notes that housing prices are falling, and home sales have slowed. This may be due to the rising interest rates and a decline in consumer confidence as the economy shows signs of a recession.
However, it’s not all bad news for the real estate market. As reported by Fortune, the pandemic housing market correction has been mild, with only the second-biggest home price correction in the post-WWII era. The article notes that while there may be some downward pressure on housing prices due to rising interest rates, the market is still robust due to high demand and limited supply.
The overall picture suggests that the real estate market is in a state of flux, with some regions experiencing a cooling down of activity while others remain strong. As the economy continues to evolve, it is likely that we will see further changes in the real estate market.