Economists see ‘turning point’ in housing market this year as interest rate cuts loom

By Sammy Hudes
BNN Bloomberg Real Estate
January 8, 2024
Category: Finance & Economics
Region: Canada

After a year marked by caution and shifting expectations spurred by rising borrowing costs, economists believe the Canadian housing market could be in for a rebound in 2024. That’s largely dependent on forecasts that the Bank of Canada could begin cutting its key interest rate from the current level of five per cent as early as the second quarter of this year. TD Bank economist Rishi Sondhi, “we’re getting some indications that the market, at least from a demand perspective, is starting to turn around.” …”I wouldn’t expect anything too headline-grabbing from the resale housing market for the next few months,” noted CREA chair Larry Cerqua. “That’s a good thing, because a market that looks to be stabilizing in balanced territory increasingly suggests the soft-landing scenario.”

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