Record population growth and a relatively resilient economy have kept the overall demand for housing strong. However, more of that demand has been pointed at the rental market, as high borrowing costs and uncertainty on the direction of interest rates has seen many prospective home buyers remain on the sidelines in the short term. When mortgage rates start trending lower, home sales will pick up quickly.

Competition between buyers remained strong enough to keep the average selling price in October above last year’s level. Home prices edged up 3.5 per cent from last October, to about 1.26 million. However, home prices remain well below their record peak reached at the beginning of 2022.

Though the Bank of Canada decided to hold interest rates at five per cent in its most recent announcement late last month, it continues to be very challenging for buyers to qualify for mortgages.