The initial rate cuts by the Bank of Canada this summer didn’t spur the expected housing activity. However, with more cuts potentially on the way, we anticipate an increase in new listings as sellers who held back may now enter the market.

While the current 4.5% rate might not yet make housing more affordable, the ongoing decline in rates offers a glimmer of hope for potential buyers.

Canadians across the country are eagerly awaiting additional rate cuts, which could improve future home affordability. However, balancing mortgage affordability with rising unemployment will be key to reducing the number of households facing financial strain.

Home prices in Canada remain among the highest in the world’s advanced economies (Japan, France, Germany, Italy, and the UK). This has caused many potential first-time buyers to hold off for now. Higher property taxes, stricter qualifying stress-test rates, and the current wave of mortgage renewals will also impact the market this fall.

In 2023 alone, Canada saw a 46% increase in new residents, further driving housing demand and prices. As rates continue to drop, we hope to see prices stabilize due to increased supply as demand rises.

If you’re looking to buy or sell a home, or simply have questions to better prepare yourself for a future move, don’t hesitate to reach out to me!