Erin Nicole Davis is a born and raised Toronto writer with a passion for the city and its urban affairs and culture.
With the Bank of Canada finally making a rate cut last month – the first one in over four years – Canada’s realtors say that the country’s buyers are slowly coming off the sidelines.
This, of course, is in contrast to what we’ve seen on the market from coast to coast for the past two years, when prices stalled or fell, but sky-highnegatively impacted affordability. With that said, Canadians shouldn’t get their hopes up that borrowing rates return to the rock-bottom levels seen at times during the past decade. “Moreover, income growth will be muted in the coming quarters as the Canadian economy slows,” reads the report.
“Since the pandemic, affordability has deteriorated less in Ontario and BC than elsewhere in Canada, but that’s largely because they were already unaffordable and had less room to run,” writes Desormeaux. “We think those jurisdictions’ particularly costly starting points mean they’ll remain the most prohibitively expensive. By contrast, the cost of homeownership should remain relatively low in Quebec and Alberta despite the more pronounced erosion of affordability there since late 2019.
Desormeaux says that opportunities may differ for apartments and detached homes, or between cities or neighbourhoods, but that some prospective buyers will indeed find opportunities by the end of the year and in the early months of next year. By that point, Desormeaux anticipates that the national DAI will have climbed by about five percentage points from its current levels, which is about two‑thirds of the affordability improvement expected by the end of 2025.
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