From RBC Economics:
Atlantic Canada’s housing market was not immune to the significant slowdown in activity that has swept across the country since spring. In the last few months, housing resales in the region fell back to the lows reached during the late 2008 to early 2009 downturn. The decline was felt across the board, including areas, such as St. John’s, which were on a tear earlier this year. The cooling in demand loosened up market conditions a little – they were very tight at the start of this year – and restrained home price increases. In turn, this limited the rise in homeownership costs in the region. Depending on the housing type, RBC Housing Affordability Measures moved up between 1.1 and 1.5 percentage points in the second quarter and remain very close to long-term averages. Overall, housing affordability in Atlantic Canada
continues to be quite attractive and signals little in the way of undue
stress at this point.
- srbp -