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

TORONTO — 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.

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.