CREA forecasts rebound in residential property sales

According to the latest quarterly forecast from the Canadian Real Estate Association (CREA), interest rates are expected to continue to be the major factor affecting Canadian housing markets into 2024 and 2025.

Many Canadian housing markets have been quiet since the Bank of Canada's summer rate hikes last year. Interest rates have been the major factor affecting markets over the last few years, and this is expected to continue to be the case in 2024 and 2025.

Expectations around the timing of the first rate cut in 2024 seem to have solidified to the second half of the year, and financial markets are currently pricing in about 50 basis points of cuts by the end of 2024.

CREA's March 2024 statistics release, reflected a bounce in new supply around the second week of March followed by a surge in sales in the last week of the month, and a significant jump in listings in the first week of April; giving the appearance the market could be gearing up.