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A Few Bank of Canada Rate Cuts Could Speed Up Return of Buyers in Housing Market, Says BMO

BY MT Newswires | ECONOMIC | 09/16/25 11:48 AM EDT

11:48 AM EDT, 09/16/2025 (MT Newswires) -- Canadian existing home sales rose a modest 1.9% from year-ago levels, but that leaves activity within the range of what used to be 'normal', if there is such a thing in Canadian real estate, said Bank of Montreal (BMO).

That is, sales are well within the pre-COVID range of activity, although still toward the lower end.

In markets where price corrections are ongoing, ample inventory is starting to pull buyers off the sidelines, noted the bank.

A few more Bank of Canada rate cuts that take mortgage rates down into the mid-3% range could speed up the process and begin to finally tighten some of these markets, according to BMO.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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