from TD Economics looks ahead to the anticipated trajectory of the Canadian housing market, saying that “headwinds” brought on by the Bank of Canada’s continued hike cycle will cause sales activity to dip in the second half of the year.
Despite some support from tight supply-demand conditions, which should keep average price growth positive in the third quarter, a fourth-quarter slide is expected for prices as well, continues Sondhi. “Like sales, we’ve marked down our quarterly growth profile next year.” TD’s report comes on the heels of Statistic Canada’s latest inflation measure, released Tuesday morning, which showed that the Consumer Price Index has slowed to 3.4%, putting it at its lowest level in almost two years.
Tuesday’s TD Economics report predicts that the Bank will opt to cut rates in the second quarter of 2024. In the meantime, the impending implications to housing remain largely unknown; there are far too many variables to consider.