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With the Bank of Canada holding its interest rates steady, economists are observing a gradual return to pre-pandemic housing market norms. RBC’s assistant chief economist Robert Hogue notes improved inventory levels and inventory turnaround times, giving buyers more breathing room—though this recovery is uneven across Canada. The Canadian Real Estate Association (CREA) reports a moderate rebound in national home sales—up 3.5 % in May and another 2.8 % in June—while the Greater Toronto Area saw a striking 17.3 % uptick in sales since April.

Hogue suggests that growing consumer confidence and the absence of major interest rate cuts could sustain this recovery—assuming no adverse shocks from the U.S. trade environment. Mortgage brokers across Canada, including Hannah Martens from the Canadian Mortgage Brokers Association Atlantic, say business remains brisk despite high prices and less favorable borrowing rates. Her takeaway? Buyers who are ready shouldn’t wait for a “perfect” market.

Though there's renewed activity, affordability remains a significant—and largely psychological—barrier. Ontario broker Mary Sialtsis points out that many buyers who can afford to purchase are hesitating, possibly waiting for better deals, while sellers may need to recalibrate their expectations based on current comparable sales. Anne-Elise C. Allegritti of Royal LePage highlights that Canadians are adapting to this “new normal” in borrowing rates—not expecting the ultra-low financing seen during the COVID-19 era—marking a stabilizing market phase.

Read the full article on: Global NEWS