We had a positive start to 2024. The Bank of Canada expects the rate of inflation to recede as we move through the year. This would support lower interest rates, which would bolster homebuyers’ confidence to move back into the market.

Now that the Bank of Canada has softened its message on further interest rate hikes, buyers may have more assurances that borrowing costs will start to fall and that could encourage them to begin pulling the trigger on transactions.

A lot of would-be homebuyers are waiting for the Bank of Canada to make an actual cut, likely in the second half of 2024. If the central bank starts to lower its benchmark interest rate from the current 5 percent, confidence in making a purchase will improve and that translates into higher sales.