Housing market to see 'gradual liftoff' in second half of 2024: RBC

Canada’s housing market is expected to see a gradual uptick in activity towards the end of this year while ongoing affordability concerns will hamper the market’s recovery, a new report says.

RBC Economics published an outlook report on Monday, which projected that the Canadian housing market will see a “tale of two halves” in 2024, as interest rates are expected to be lowered at the year’s midway mark.

“Interest rates will continue to dictate the outcome of Canada’s housing market in 2024 with the first and second halves showing different pictures,” Robert Hogue, RBC’s assistant chief economist, said in the report.

“We expect slow activity and softer prices to persist in the early part of the year as the Bank of Canada maintains its policy rate… but, a pivot toward rate cuts mid-year will get the wheels turning faster over the second half or perhaps even sooner.”