Fresh home sales data reveals that the Bank of Canada’s initial interest rate cut in June did not significantly increase buyer activity. Despite a quarter-point rate cut, many buyers remain hesitant, leading to an unseasonably slow spring housing market. Local real estate boards, including TRREB and the Real Estate Board of Greater Vancouver, reported a year-over-year drop in June home sales.
Experts noted that the expected market response was muted, with buyers awaiting further rate cuts. While Alberta remains an outlier due to relative affordability, Ontario and British Columbia continue to see high borrowing costs and prices, limiting buyer activity.
Homeowners are adopting a sell-first-buy-second approach, evidenced by rising inventories. More inventory is expected to stimulate buying as declining mortgage rates become more attractive.
Experts and their data show a 1.5% quarter-over-quarter increase in home prices to $824,000. While prices remain elevated due to supply shortages. We are expecting modest price growth for the remainder of the year.
So, all in all, even the rate cut did not revive the market.
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