RBC predicts a slow start to homes sales in spring

 

The Royal Bank of Canada (RBC) predicted a slow start to Canada's spring housing market.  One of the country's largest banks attributed the slow start to higher interest rates pushing buyers away.  According to the head of personal and commercial banking at RBC, Neil McLaughlin, there will not be a spring back in mortgage orientations.  He added that prices, which have dropped 16% YoY, have to decline further, or mortgage rates must drop to get affordability back in check.  Bllomberg's data suggest RBC is the second most vulnerable bank to a correlation in the country's housing market after CIBC.  RBC's domestic residential mortgages and home-equity lines of credit amounting to $422B constitutes 51% of the net loans. In comparison, CIBC comprises 54%.