In the coming months, forecasters expect further Bank of Canada interest rate cuts that could push mortgage rates down, but does that mean it’s a good time to buy or sell a home?
Jason Mercer, chief market analyst at the Toronto Regional Real Estate Board, revealed his housing market forecasts with CTV Your Morning on Friday. Here’s what he had to share:
Better for buyers
Mercer says the central bank’s two straight rate cuts mean better affordability for many would-be homebuyers across the country, including in the Greater Toronto Area.
“Whether you’re looking for a condo, apartment or detached home, you’re benefitting from more inventory than we’ve seen from the last 10 years,” he said, noting that better supply translates to more “negotiating power” for buyers.
As for sales figures, Mercer said he expects more activity through the second half of this year and into 2025.
“If we look forward a year from today, we’re likely to see a lot more demand, a lot more sales in the marketplace than what we’ll see say through the summer,” Mercer said.
Many would-be buyers are still sitting on the sidelines, waiting for “a little bit more relief” on interest rates before making their purchase, he said, citing data from consumer polling.
As interest rates trend lower, some Canadians can take advantage of lower mortgage rates, he said.
Are Canadian housing prices dropping?
Despite the growing housing supply, sellers haven’t been slashing prices as much as expected, Mercer said.
“You hear the sales are down, you expect prices to be falling as well, but in fact it’s remained relatively stable as we move through 2024,” he said.
The housing market has remained relatively muted and the cuts haven’t resulted in a big sales boost, but conditions are starting to change, according to the Canadian Real Estate Association.
For more insights and forecasts, watch the full interview in the video above.
With files from The Canadian Press