The housing market in Canada will not be fully suppressed by the Bank of Canada’s interest rate hikes, according to a new report from Desjardins. The report emphasizes that the housing market rebounded strongly since March, coinciding with the pause in rate increases that ended recently. Although another interest rate increase is expected in July, Desjardins believes it will help prevent further increases in housing market activity in the coming months. Despite rising interest rates, the housing market is expected to remain resilient due to factors such as population growth, increased savings, and strong income growth. However, Desjardins also warns of an imbalance in supply and demand, which could lead to rising prices and eroding affordability in the future. The report projects a decrease in the national average sale price for 2023, followed by a climb in 2024, with certain provinces experiencing stronger growth. Overall, without significant policy changes or market dynamics, housing affordability is expected to continue deteriorating as home values and borrowing costs increase.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
