National housing market in ‘holding pattern’ as buyers patient for lower rates, CREA says

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The association says the number of homes sold in August fell 2.1% compared with the same month last year

The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely “stuck in a holding pattern” despite borrowing costs beginning to come down.

“With ever more friendly interest rates now all but guaranteed later this year and into 2025, it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well-behaved in most of the country,” said CREA senior economist Shaun Cathcart in a press release.

The central bank reduced its key lending rate by a quarter-percentage point to 4.25 per cent. Economic forecasts say the central bank will likely continue cutting its key lending rate by a quarter-percentage point until July 2025, bringing it down to around 2.5 per cent by that time. The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.

“Before the property’s sold, we’ve got to generate offers. Before we generate offers, we’ve got to generate showings,” he said.The number of newly listed properties was up 1.1 per cent month-over-month, led by a boost in new supply in Calgary. With new listings also up in Edmonton, the supply gains in Alberta offset a decline in the Greater Toronto Area, the CREA report said.

 

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