The economic landscape has been shaped by caution and shifting expectations throughout the past year, largely influenced by the impact of rising borrowing costs. Economists are now eyeing the Canadian housing market, anticipating potential changes in 2024.
The key focus is on the belief that the Canadian housing market could be in for a rebound. This outlook hinges significantly on forecasts suggesting that the Bank of Canada might initiate a reduction in its key interest rate, currently standing at five per cent, as early as the second quarter of this year.
The Canadian Real Estate Association, in its latest report on national home sales and pricing data, has observed softer market conditions since the conclusion of last summer. Sellers are now joining potential buyers on the sidelines, contributing to a dynamic shift in the real estate landscape. As the economic narrative unfolds, the Canadian housing market remains a focal point of interest and speculation in the year ahead.