The Canadian Real Estate Association (CREA) recently highlighted that the Canadian housing market remains in a “holding pattern” as buyers await further reductions in interest rates. Although there were slight gains in market activity in June and July following two consecutive interest rate cuts by the Bank of Canada, the larger picture remains one of minimal movement. National home sales increased by 1.3% month-over-month in August, but sales were still down 2.1% year-over-year.
Many buyers are choosing to remain on the sidelines, anticipating better affordability as further rate cuts are expected into 2025. With interest rates projected to drop, experts suggest that housing demand may pick up later in the year. However, prices have remained relatively stable, with the National Composite MLS® Home Price Index largely unchanged, and average sale prices showing only a slight 0.1% increase year-over-year in August.
For now, the market balance has been relatively stable, with 4.1 months of inventory available, consistent with recent trends. This indicates that while there are signs of future activity, the market is still in a phase of waiting for more favorable conditions.
