The impact of the tightened mortgage rules introduced at the start of the year appears to be rising.
A report from RBC Economics says that softening sales in February, following a slowdown in January, suggest a trend that is being felt across the country.
Highlighting data from local real estate boards, RBC says that price trends appear to be holding up, but that sellers are facing a weakened bargaining position.
The decline in Toronto (almost 35% year-over-year) in March translates, on a seasonally-adjusted basis, to a rough calculation of an 8-year low according to RBC.
There are some bright notes in RBC’s analysis though with an uptick in listings in February which it says could suggest increased move-up buyer activity in the coming months.
In conclusion, the report says that the B20 mortgage rule changes appear to have shifted homebuying decisions forward into 2017 with a corresponding dip at the start of 2018.
It forecasts that the impact of the new tightened rules will gradually ease in the coming months.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
More market watch: