The latest update from the Canadian Real Estate Association (CREA) indicates that the national real estate market in Canada has been relatively stable but subdued over the summer. In July 2024, home sales dipped slightly by 0.7% compared to June, although they were up 4.8% from the previous year. The market is currently in a balanced state, with a sales-to-listing ratio of 52.7%, slightly down from 53.5% in June.
The Bank of Canada has made two interest rate cuts this summer, which has started to create conditions that could lead to a more active housing market in the fall. However, these cuts have not yet significantly impacted home sales, as most buyers are using fixed-rate mortgages that respond more slowly to changes in the central bank’s rates.
Looking ahead, CREA and market analysts expect that lower borrowing costs might rekindle the housing market in 2024, especially if borrowing rates decrease to around 4% by next spring. This could attract more buyers, especially in markets where affordability remains an issue, like in Ontario and British Columbia, where inventory is higher and competition is less intense compared to the Prairies and Atlantic Canada, where markets are more favorable to sellers【6†source】【7†source】【8†source】.
Details on the CREA web site.
