Home price growth in Canada is expected to slow to around 1%, lower than earlier expectations of about 4%, mainly due to declining condo prices in British Columbia and Ontario.
Housing demand remains weak, with high inventory levels and slower population growth limiting a strong market recovery.
The policy rate is expected to stay at 2.25%, unless unemployment rises significantly above about 7–7.5%.
Mortgage renewal pressure is easing slightly, as stronger income growth and longer amortization periods have helped soften the expected payment shock.
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