Canada Housing Research Brief

Canada’s housing market little changed. Following an uptick in activity in June amid the Bank of Canada’s first rate cut and some sellers looking to get ahead of the higher capital gains tax, home sales edged back 0.7 per cent monthly in July. While a clearer path for financing costs has materialized, elevated home prices in more unaffordable cities continue to temper the nation’s housing market. However, with borrowing costs likely to fall further over the remainder of the year, sellers are looking to capitalize on pent-up demand that is currently sidelined. The number of newly listed properties inched up 0.9 per cent monthly. While the sales-to-new-listings ratio continued to suggest a balanced market, the median price of a single-family home rose for the second consecutive month, edging up 0.1 per cent. On an annual basis, prices were down 4.1 per cent. With markets expecting additional rate cuts at each of the central bank’s remaining policy meetings in 2024, purchasing activity and price appreciation are likely to gain momentum heading into 2025.