After a year of caution and shifting expectations spurred by rising borrowing costs, economists believe the Canadian housing market could be in for a rebound in 2024.
That's largely dependent on forecasts that the Bank of Canada could begin cutting its key interest rate from the current level of five per cent as early as the second quarter of this year.
TD Bank economist Rishi Sondhi says there has been weaker sales and price activity over the past few months but there are indications that the market is starting to turn around.
The Bank of Canada has held rates unchanged over three rounds of decisions as inflation has continued to moderate, but the central bank has said it could still raise rates even as forecasters expect the next move will be a cut.
Economists expect lower rates to bring more housing activity and small price increases over the second half of the year.
But some don't see a rapid recovery in the cards even once the cycle of rate cuts begins, as that process will likely be a slower one in the early stages than the hiking cycle seen last year.