Aug 23, 2024
CREA: Interest rate cuts fail to ignite Canadian housing market
Despite recent interest rate cuts by the Bank of Canada, the housing market saw little improvement in July, according to new data. The Canadian Real Estate Association (CREA) reported a 0.7% decline in home sales month-to-month, reversing some gains from June.
CREA senior economist Shaun Cathcart attributed this to a mixed real estate climate, with some markets seeing declines and others small gains.
The rate cuts, implemented in June and July, have yet to significantly boost market activity. However, experts anticipate that ongoing reductions in borrowing costs will encourage more buyers as affordability improves. With expectations for further rate cuts, analysts predict that mortgage rates will decrease, potentially spurring increased housing market activity this fall.


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