Canada home prices to rise modestly on subdued demand despite rate cuts

Bank Of Canada News

Canada home prices to rise modestly on subdued demand despite rate cuts
CanadaRate ReductionsHousing Affordability
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Home prices in Canada will barely rise in 2024 and only modestly in coming years despite expectations for many more interest rate cuts, with affordability...

BENGALURU - Home prices in Canada will barely rise in 2024 and only modestly in coming years despite expectations for many more interest rate cuts, with affordability improving but remaining stretched, according to analysts polled by Reuters.

Home prices are forecast to climb a median 2.8% and 3.0% in 2025 and 2026, respectively - broadly unchanged from a May poll. While housing starts jumped 16% in July on a monthly basis, according to the Canada Mortgage and Housing Corporation , and new listings rose nearly 1%, home sales fell 0.7%, Canadian Real Estate Association data showed.

"Significant reductions in rates will be needed to make a noticeable difference in ownership costs, especially in Canada's priciest markets."

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