MNI: Realtors See Toronto Surge On Expected BOC Cuts In H2
Toronto home sales increased for a second month in January to rise more than a third over the past year, and are set for more gains as the Bank of Canada moves to cut interest rates, the city's real estate group said Tuesday.
“Once the Bank of Canada actually starts cutting its policy rate, likely in the second half of 2024, expect home sales to pick up even further. There will be more competition between buyers in 2024 as demand picks up and the supply of listings remains constrained. The end result will be upward pressure on selling prices over the next two years,” said Toronto Regional Real Estate Board Chief Market Analyst Jason Mercer.
Governor Tiff Macklem kept rates on hold last month, and suggested debate is shifting away from hiking while talk of a cut is premature until inflation is clearly headed all the way back to the 2% target. The realtors' view of further house price gains suggests shelter costs that account for a big share of inflation will remain sticky. (MNI INTERVIEW: Peaking BOC Rate Rekindles Housing-Royal LePage)
Sales for January rose 9.6% following December's 20% rise. The group's composite price index fell 1.2% from a year earlier to about CAD1.1 million.