Canada anticipates interest rate drop in 2024, affecting the housing market

Posted on January 15, 2024   |  

Canada is considering its first interest rate cut in the upcoming spring following a significant increase in interest rates throughout the previous year.

Forecasts indicate a projected 5.5% rise in home prices by the end of this year compared to prices in 2023.

A Canadian real estate franchiser predicts the national average for a typical home to reach $843,684 in 2024.

The forecast is based on the assumption that the Bank of Canada has completed its interest rate hike campaign, with the key lending rate expected to remain steady at 5% in the first half of 2024.

Anticipations suggest the central bank may initiate modest interest rate cuts in late summer or fall of the following year.