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The article discusses BMO's prediction that Canada's real estate stagnation has only just begun, despite recent interest rate cuts and some increase in sales. While home prices have seen minimal change, they remain too high for many buyers, limiting demand. The anticipated rapid recovery, which has been predicted for the last few years, is unlikely, with affordability issues continuing to impact the market. Even with interest rates falling, fixed-rate mortgages remain too expensive to drive significant growth in sales or prices.

BMO's report highlights that while the Bank of Canada’s rate cuts have impacted variable rates, they haven’t sufficiently reduced the cost of home ownership for many buyers. This, combined with high home prices, means the market is expected to remain flat or stagnant in 2025. Even with some improvements in certain regional markets, Toronto, as the largest and most expensive, sets the overall tone for the Canadian market, which shows little sign of a strong rebound.

Overall, the market’s lack of movement can be attributed to a combination of high prices, limited credit capacity, and a general reluctance from sellers to accept lower valuations. The article suggests that Canadians should not expect a "trampoline-like rebound" in the near future, with regional variances adding to the complexity of the national real estate situation.

Read the full article on: BETTER DWELLING