Building Magazine


RBC CEO says housing market slowdown a welcome shift in consumer psychology


The chief executive of Royal Bank says the housing market slowdown is a welcome shift in consumer psychology toward more caution.

David McKay told shareholders at the company’s annual meeting Friday that the bank is seeing a more balanced pricing trend after tighter conditions last year.

market slowdown, RBC

The Royal Bank of Canada HQ in Toronto. According to CEO David Mckay, the market slowdown may have positive impacts in the long term. Photo by Siqbal via Wikimedia Commons.

The Vancouver and Toronto region real estate boards, representing the country’s hottest markets, reported double-digit annual sales declines in March earlier this week.

B.C. and Ontario have introduced a series of measures to cool the housing market, including taxes on non-residents.

Further cooling pressure came from the federal level, including a financial stress test for buyers implemented Jan. 1 for federally-regulated lenders.

Both variable and fixed-rate mortgage rates have also risen as a result of moves by the Bank of Canada and fluctuations in the bond markets.

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