CREA lowers housing market forecast for 2024 amid 'holding pattern' for home sales

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OTTAWA — The Canadian Real Estate Association is downgrading its housing market forecast for the remainder of the year again, saying the Bank of Canada’s interest rate cuts haven’t spurred the gradual improvement it previously anticipated.

It said the average price of a home sold last month amounted to $669,630, up 2.1 per cent from September 2023. The association said it is now forecasting just a 0.9 per cent annual increase for 2024 to $683,200, down from its previous outlook of a 2.5 per cent annual increase. “It would be one thing if we had lots of buyers and multiple offers and lots of showings, but the buyers are just taking their time.”

The Bank of Canada began its rate-lowering process in June and has cut its key rate by a quarter-percentage point a total of three times so far this year, bringing it to 4.25 per cent.

 

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