By Fergal Smith
TORONTO (Reuters) – Canadian home sales took a breather in December but were still 10% higher in the fourth quarter compared to the third quarter as the Bank of Canada cut borrowing costs, data from the Canadian Real Estate Association (CREA) showed on Wednesday.
The fourth quarter increase stood among the stronger quarters for activity in the last 20 years outside of the pandemic, CREA said.
“The number of homes sold across Canada declined in December compared to a stronger October and November, although that was likely more of a supply story than a demand story,” Shaun Cathcart, CREA’s senior economist, said in a statement.
“Our forecast continues to be for a significant unleashing of demand in the spring of 2025, with the expected bottom for interest rates coinciding with sellers listing properties for sale in big numbers once the snow melts.”
The Bank of Canada has cut interest rates by 1.75 percentage points since June to 3.25% to support the economy.
Sales fell by 5.8% in December from November but were up 19.2% on an annual basis.
The industry group’s home price index edged up 0.3% on the month and was down 0.2% annually.
