In July, GTA home prices remained relatively flat year-over-year but fell 4.8% compared to June, despite recent rate cuts by the Bank of Canada.
Active listings increased by over 50%, reflecting both seasonal trends and buyer caution. As the market adjusts, the Fall numbers will provide a clearer picture of how the recent rate cuts may influence the direction of the market.
Join Alex as he provides his insights on what we are seeing in Toronto Real Estate Market, and breaks down the latest stats released by TRREB.
Mortgage And Economic Report
From Sean Smith of Dominion Lending
BoC cut the overnight rate by 25bps on July 24th, bringing the prime rate to 4.5%. More cuts are expected.
TD Bank and CIBC forecast an additional 175 bps cut by the end of 2025, bringing the overnight rate to 2.75%. This would bring the mortgage prime rate to 4.95%
At the September and October meetings, Scotia Economics predicts two more rate cuts in 2024.
Many economic indicators suggest a broad-based easing of price pressures, supporting further rate cuts. However, some factors cause concern among economists, and these factors need to be closely monitored.
Canada’s balance sheet plans remain unchanged, and there is no immediate appetite for changes. This is something to keep an eye on as the Bank of Canada is still running a tightening process which is keeping bond yields elevated
GDP growth forecasts have been slightly revised downwards, with an economic soft landing still expected. However, this can change quickly, especially if we see a black swan-type credit event.
BoC forecasts headline inflation to fall below core inflation in the second half of 2024 due to base effects and gasoline prices.
The Next Bank of Canada meeting is September 4th, 2024
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