As interest rates trend down, could housing get more affordable?

Forecasters are expecting further Bank of Canada interest rate cuts, but does that mean it's a good time to buy or sell a home? Real estate analyst Jason Mercer shares his predictions with CTV Your Morning.

In the coming months, forecasters expect further Bank of Canada interest rate cuts that could push mortgage rates down, but does that mean it's a good time to buy or sell a home?

Jason Mercer, chief market analyst at the Toronto Regional Real Estate Board, revealed his housing market forecasts with CTV Your Morning on Friday. Here's what he had to share:

Mercer says the central bank's two straight rate cuts mean better affordability for many would-be homebuyers across the country, including in the Greater Toronto Area.

"Whether you're looking for a condo, apartment or detached home, you're benefitting from more inventory than we've seen from the last 10 years," he said, noting that better supply translates to more "negotiating power" for buyers.

As for sales figures, Mercer said he expects more activity through the second half of this year and into 2025.

"If we look forward a year from today, we're likely to see a lot more demand, a lot more sales in the marketplace than what we'll see say through the summer," Mercer said.

Many would-be buyers are still sitting on the sidelines, waiting for "a little bit more relief" on interest rates before making their purchase, he said, citing data from consumer polling.