Home sales data show market optimism, but could be short-lived: economists
BNN Bloomberg
Economists believe Canada’s latest housing sales data suggests Canadians are increasingly optimistic that interest rates may come down soon, but suggest any real estate market rebound could be short-lived.
On Wednesday, the Canadian Real Estate Association reported home sales for January jumped 22 per cent year-over-year, the largest such gain since 2021.
In a report Wednesday, Daren King, senior wealth advisor and portfolio manager with National Bank Financial, said the rebound in home sales came at a time when fixed mortgage rates have fallen.
“Furthermore, the stabilization of the Bank of Canada’s policy rate and the anticipation of an easing of monetary policy in 2024 have probably motivated some buyers to take action,” he wrote in the report.
