Canada's 'sluggish' housing market in recovery mode following interest rate cuts, Royal LePage forecast predicts

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Royal LePage’s latest housing market forecast predicts a real estate rebound that will see Canada’s “sluggish” markets in recovery mode by spring following a third straight interest rate cut.

Canada's 'sluggish' housing market in recovery mode following interest rate cuts, Royal LePage forecast predictsA West-end Toronto home for sale is shown in this July 15, 2023 file photo. THE CANADIAN PRESS/Graeme Roy

“Despite three cuts to the Bank of Canada’s overnight lending rate, buyer demand nationally remains weak, particularly among two key groups: first-time homebuyers and small investors,” said Phil Soper, president and chief executive officer at Royal LePage. “First-time buyers, who are more sensitive to interest rates, are adopting a wait-and-see attitude. With home prices essentially flat and interest rates steadily declining, they perceive no penalty in postponing their purchase.

Its data for the third quarter in 2024 found that the median price of a single-family detached home increased two per cent year-over-year to $850,400, while the median price of a condominium increased 0.5 per cent to $590,200. The report stated that the aggregate price of a home in the Greater Toronto Area increased year-over-year to $1,155,800 in the third quarter of 2024. On a quarterly basis, however, the aggregate price of a home in the GTA decreased 2.9 per cent.

 

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