Canadian Housing Market Stuck In A Holding Pattern
National home sales increased in both June and August 2024 after the Bank of Canada’s two interest rate cuts. However, the overall market remains mostly flat, with home sales up just 1.3% month-over-month in August, the highest level since January.
Despite some movement, the Canadian housing market is still in a holding pattern. Potential buyers are waiting for more significant interest rate cuts, while home prices remain stable.
Inventory and Listings:
Despite some movement, the Canadian housing market is still in a holding pattern. Potential buyers are waiting for more significant interest rate cuts, while home prices remain stable.
Inventory and Listings:
- By the end of August, around 177,450 properties were listed for sale, up 18.8% from last year but still below historical averages.
- New listings increased by 0.9% in July, driven by supply growth in Calgary.
- The National Composite MLS® Home Price Index (HPI) remained flat from July to August.
- National home prices are down 3.9% compared to August 2023, but prices have been stable since the start of this year.
Outlook:
- With further interest rate cuts expected, homebuyers may remain cautious in the short term, but sales are likely to pick up as affordability improves.
- The Bank of Canada is anticipated to cut rates by at least 25 bps per decision, with the overnight rate potentially falling to 2.5% by next year.
- The federal government will allow 30-year mortgages for first-time buyers and buyers of newly built homes, expanding access to the housing market.
- Starting in December, mortgage insurance will be available for homes worth up to $1.5 million, an increase from the current $1 million cap.
Alexander Gasenko - your trusted Toronto & GTA mortgage broker. Dominion Lending Centres Maple Mortgage Group Independently Owned & Operated — FSRA# 13415
Sign up with
your email address
to receive news
and updates.
Subscribe
