Economic Backdrop and Financial Performance Objectives
Recovery in property values to stall temporarily
Home prices are back above year-ago levels...
Composite MLS (1) Home Price Index
Annual % change
40
30
20
20
10
-10
...in most markets
Composite MLS(1) Home Price Index
Annual % change
40
-Vancouver
-Calgary
30
-Toronto
-Montreal
20
10
-10
-20
-20
2015
2016
2017
2018
2019
2020
2021
2022
2023
2015
Source: Canadian Real Estate Association, RBC Economics
2016
-Small markets
-Large markets
2017
2018
2019
2020
2021
2022
2023
Source: Canadian Real Estate Association, RBC Economics
Poor affordability is poised to restrain demand growth...
Housing affordability: Canada
Ownership costs of an average home as % of median household income
...and keep prices stagnant near term
Home price forecast: Canada
RPS aggregate home price benchmark, $
900,000
Forecast
850,000
60
Less affordable to own a home
800,000
750,000
50
700,000
650,000
40
600,000
550,000
30
More affordable to own a home
500,000
450,000
20
400,000
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
Source: RPS, Statistics Canada, Bank of Canada, RBC Economics
2017
2018
2019
2020
2021
2022
2023
2024
2025
Source: RPS, RBC Economics
(1) MLS: Multiple Listing Service.
50 | CANADIAN HOUSING MARKET
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