The Financial Post reports in its Tuesday, May 7, edition that Canada's big banks are eagerly watching the country's real estate markets for evidence of a rebound this spring.
The Post's Geoff Zochodne writes that according to recent data, numbers for housing sales shot up in Toronto and Montreal in April, but took a serious tumble in Vancouver. For the big banks it may take a steady flow of housing market gains before they see a trickle-down effect in profits and share prices.
The mixed results so far reflect that Canada's housing market is really made up of several regional ones.
Bank of Canada Governor Stephen Poloz said Monday that "some previously frothy markets are still adjusting to a significant shift in price expectations, while other markets appear to be operating in a manner consistent with market fundamentals."
While the overall picture for housing is patchy, National Bank Financial analyst Gabriel Dechaine noted that volume data can provide a sense of where mortgage growth is going and that there have been positive indications from two of the three biggest Canadian markets, Toronto and Montreal.
Toronto saw a nearly 17-per-cent increase in home sales in April as compared with a year ago.
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