Mon Sep 16 15:45:23 UTC 2024: ## Canadian Home Sales Remain Stagnant Despite Lower Interest Rates
**Toronto, Sept. 16, 2024** – The Canadian real estate market continues to hover in a state of limbo despite recent interest rate reductions, according to the Canadian Real Estate Association (CREA). While sales edged up slightly from July, August saw a 2.1% decline compared to the same month last year.
CREA senior economist Shaun Cathcart attributes this hesitancy to potential buyers waiting for further improvements in affordability, especially as interest rates are expected to continue falling through 2025. This sentiment is echoed by TD economist Rishi Sondhi, who believes buyers may be holding off for even lower rates before making a purchase.
While sales haven’t seen a significant rebound, there are promising signs for the future. The number of newly listed properties increased by 1.1% month-over-month, driven by gains in Calgary and Edmonton, partially offsetting a decline in the Greater Toronto Area. This suggests a potential shift towards a more balanced market, favoring buyers who can negotiate favorable terms.
Meanwhile, the federal government announced changes to mortgage rules aimed at boosting affordability, including an increase in the price cap for insured mortgages and expanded eligibility for 30-year amortization.
Despite the current market conditions, experts remain optimistic about a potential rebound in the coming months. “We currently expect healthy Canadian home sales growth over the next several quarters starting in Q4,” said Sondhi. However, he cautions that price growth will likely be restrained by affordability concerns and tight supply in key regions.
The national average sale price for August reached $649,100, a marginal increase of 0.1% compared to last year. This suggests that while prices may not be skyrocketing, they remain relatively stable in a market that continues to favor buyers.
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