| Lower interest rates are increasingly converting large pent-up demand for housing into homebuying transactions.Most major markets saw rises in resales and prices between October and November, adding to gains realized the previous month.The buildup of inventories this year has facilitated the resale market upswing.Price pressures remain tame for the most part though there are notable variations across markets and segments.Our view is that any price appreciation will be gradual until interest rate cuts restore ownership affordability more significantly next year. |
 |
| Robert HogueAssistant Chief Economist | Royal Bank of Canada |
Impact for Buyers: Lower interest rates are stimulating pent-up demand, enabling more buyers to enter the market and increasing the number of homebuying transactions. While price pressures remain moderate, buyers may experience gradual price increases as affordability improves with further interest rate cuts in the coming months.
Impact for Sellers: Rising resales and prices, along with an inventory buildup, are creating favorable conditions for sellers, especially in markets where demand is strong. However, price growth will likely be gradual, and sellers should be mindful of varying market conditions and price expectations depending on the segment and location.