The Canada Mortgage and Housing Corp. predicts a rebound in home sales and prices this year, driven by improved borrowing conditions. However, the outlook is clouded by potential U.S. tariffs, which could slow the economy and limit housing activity. While the Bank of Canada is expected to further cut rates to support the economy, the CMHC warns that a prolonged trade war could lead to a recession and delay housing recovery.
OTTAWA — Canada Mortgage and Housing Corp. is forecasting a rebound in home sales and prices this year as homebuyers take advantage of improved borrowing conditions, but its outlook is clouded by the threat of widespread tariffs from the U.S.
“There is that investment uncertainty that is weighing on the future of business and also the Canadian dollar.” Despite those challenges, the report predicts the combination of lower borrowing costs and Ottawa’s changes to mortgage rules will help unleash pent-up demand from those who have felt priced out of the market.
The CMHC report noted the central bank is expected to further cut rates in 2025 to control inflation and support the economy amid new tariffs.
CANADA HOUSING MARKET TARIFFS INTEREST RATES HOME SALES RENTALS
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canada's Housing Market Poised for Rebound in 2025The Canadian Real Estate Association (CREA) forecasts an 8.6 percent increase in home sales for 2025, driven by lower borrowing costs and pent-up demand. The national average home price is expected to rise by 4.7 percent to $722,221.
Read more »
Canada's Housing Market Poised for Rebound, but Trade War Fears LoomCanada Mortgage and Housing Corp. (CMHC) predicts a rebound in home sales and prices in 2024, driven by improved borrowing conditions. However, the outlook is tempered by the potential for U.S. tariffs and other economic factors. While sales are expected to remain below 10-year averages in unaffordable markets like Ontario and B.C., they are projected to reach 'historically high levels' in Alberta and Quebec. The report also forecasts a slowdown in housing starts over the next three years due to lower condominium construction.
Read more »
Canada's Housing Market Heats Up as Bank of Canada Cuts Interest RatesExperts weigh in on the potential impact of the Bank of Canada's latest rate cut on Canada's housing market. While some predict a surge in activity fueled by pent-up demand, others caution that trade tensions and economic uncertainty could dampen any recovery.
Read more »
Will Toronto become Canada's most expensive housing market in 2025?This year could be the year Toronto takes the crown for the most expensive real estate market in the country.
Read more »
Canada's Housing Market: Ontario Lags While Rest of Country BoomsBMO economists analyze the diverging trends in Canada's housing market, highlighting Ontario's struggles while other regions experience strong growth. Brian Belski also discusses the TSX's performance in 2024, emphasizing the role of multiple expansion and predicting a shift towards earnings growth as the primary driver in 2025.
Read more »
Trade War with US Could Be 'Problematic' for Canada's Housing MarketIndustry experts warn that a looming trade war with the United States, potentially driven by U.S. tariffs, could negatively impact Canada's housing market. They anticipate increased costs for construction and renovation materials, citing the close economic ties and significant exchange of homebuilding materials between the two countries. The experts emphasize the broader economic concerns, predicting a slowdown or recession would further dampen housing starts due to uncertainty and potential job losses.
Read more »