In July, the Canadian housing market took a pause after showing signs of renewed momentum in June following the Bank of Canada’s interest rate cut. According to the Canadian Real Estate Association (CREA), the expected pace of future policy easing has increased significantly, with markets anticipating rate cuts at every Bank of Canada decision for the rest of the year.
National home sales decreased slightly month-over-month, but were still higher than in July 2023. The number of newly listed properties increased, and the MLS Home Price Index saw a slight increase month-over-month but was down year-over-year. The actual national average sale price also decreased slightly compared to the previous year.
Phil Soper, CEO of Royal LePage, noted an increase in market interest following the interest rate cuts by the Bank of Canada. He mentioned a rise in viewership and engagement on their website, which is unusual for August, indicating a re-ignited interest in the market.
Alberta, Nova Scotia, and New Brunswick have seen strong market performance, while Ontario has struggled. Christopher Alexander from Re/Max Canada expects increased urgency from buyers in the market, with more rate cuts anticipated to sustain activity.
Robert Hogue, assistant chief economist with RBC Economics, believes that the Canadian real estate market is slow overall, with flat prices and pressure on some condominium prices. He suggests that more interest rate cuts are needed to stimulate the market.
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