It\u2019s hard to predict the future, but plenty of people try \u2014 real estate experts included. Many of those experts thought pent-up demand would break through in 2024 after a tough 2023. <\/p>\n\n\n\n
There were indeed some inflection points \u2014 interest rates fell<\/a> and average prices rose \u2014 but Canadian home buyers have generally been slow to come off the sidelines.\u00a0<\/p>\n\n\n\n Let\u2019s take a closer look at where we started the year and how things actually unfolded. <\/p>\n\n\n\n 2024 predictions: Cautiously optimistic<\/strong><\/p>\n\n\n\n At the beginning 2024, economists predicted the Bank of Canada would drop the overnight rate from 5% to between 3.5% and 4% by year\u2019s end. A Bank of Canada survey in early 2024 also showed that consumers also expected rates to drop.[1]<\/a><\/p>\n\n\n\n\n\n\n\n What happened: Rates fell\u2026a few times<\/strong><\/p>\n\n\n\n The BoC has cut the overnight rate multiple times; it currently stands at 3.75%, and the group meets once more before the year\u2019s end. One effect: More homeowners have opted for variable rates as rates have fallen.[2]<\/a><\/p>\n\n\n\n\n\n\n\nInterest Rates<\/h2>\n\n\n\n\n