There is a growing consensus in the market that interest rates will start to fall this summer triggering a more robust housing market as mortgage rates begin to fall.
But a new report from RBC Royal Bank says we don’t have to wait until June or July in Saskatchewan because the market pivot is already taking shape here and next door in Alberta.
2024 will be a tale of two stories – a slow market in the first half as higher interest rates keep buyers out of the market but a rebound in the back half of the year as rates soften. But, the characteristics of a more buoyant market are already evident in Saskatchewan.
As a result, they are forecasting above-average resale activity for the year: up roughly 10 per cent over last year in Saskatchewan and even higher in Alberta.
While the bank says many homeowners will feel the sticker shock of higher interest rates when their mortgages come due in the next 18 months, they do not expect wholesale defaults as stress test rules in recent years ensure the capacity to withstand the increases.