This is a bit of a push-and-pull affair.
With interest rates starting to move up and more stringent rules surrounding mortgage approvals, it is going to get harder for a lot of people to buy a house. There is no doubt the rules were put in place to combat huge real estate inflation in cities like Toronto and Vancouver, but they are having an impact here too. Those rules apply here as well.
While the cost of borrowing is making it harder to buy a home anywhere in Canada, the market in Saskatchewan is making it a bit easier on buyers.
That’s the thumbnail overview of a new report from RBC Royal Bank’s economics unit. They are looking at housing trends across the country and they say Saskatchewan’s primary issue is an oversupply. That is putting downward pressure on house prices – good for buyers, not for sellers.
The pressure, though, is not too strong – they expect housing prices to decline by about one-quarter of a percentage point or about $500 this year.