A real estate sign is pictured in Vancouver, B.C., Tuesday, June 12, 2018. A new report says Canada’s housing market is still firmly in correction mode, despite having slowed in recent months. THE CANADIAN PRESS Jonathan Hayward

A real estate sign is pictured in Vancouver, B.C., Tuesday, June 12, 2018. A new report says Canada’s housing market is still firmly in correction mode, despite having slowed in recent months. THE CANADIAN PRESS Jonathan Hayward

Ontario and British Columbia headed for a buyer’s market, RBC says

High interest rates will hold back shoppers in other parts of the country

A new report says high interest rates will continue to hold back homebuyers into the new year, except in Ontario and British Columbia.

The report by RBC says those purchasing real estate in Ontario and B.C. in 2023 will hold a stronger hand as conditions in these provinces continue to favour buyers as opposed to sellers.

Assistant Chief Economist for RBC Robert Hogue says real estate conditions look reasonably balanced nationwide with sales-to-new listings in “balanced territory,” but notes this is not the case across many markets in Ontario and B.C.

Sales in Vancouver, Victoria, the Fraser Valley, Toronto, Ottawa, Hamilton, London and Niagara are now seeing a ratio of sales to listings close to 0.40, which Hogue calls the threshold where buyers have more “sway on prices.”

Home sales and prices have fallen this year as rising interest rates have increased the cost of borrowing for Canadians.

The country’s big banks have raised their interest rates as the Bank of Canada has raised its key interest rate seven times since March in an effort to bring inflation under control.

RELATED: Canadian October home sales up from September, first monthly increase since February

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