Mehdi Lotfi

An economist said Canadian home prices could begin stabilizing in 2027, as mortgage rates neared a peak even while weaker population growth kept demand soft.
He said much of the recent borrowing-cost increase may already be behind Canadians, with longer-term bond yields nearing highs and no aggressive central-bank tightening needed.
Canada’s annual population growth reportedly slowed from ~1.2M to ~200K, limiting new buyer demand even as employment among prime homebuying-age Canadians reached record highs.
The outlook also reflected a national composite price decline of ~4% this year, while firm construction costs may help keep deeper price drops limited.
Looking ahead, stronger business investment, job growth and income gains were presented as the clearest path to restoring confidence and supporting Canada’s housing recovery.

Canada Home Prices Could Stabilize in 2027

A major bank projected a 25-bps hike, but with low conviction, saying a hold was nearly as likely at Canada’s current central bank decision.
The call was not about urgency. Economists said recent central bank messaging suggested a greater willingness to act preemptively against future inflation.
Another economist said current inflation pressures looked more supply-driven, with the economy not strong and any hike likely delayed until Early-Q1 or Early-Q2 2027.
Another expert called a 2026 hike a long shot, citing struggling growth, core inflation moving closer to the ~2% target, and trade uncertainty.
For mortgage professionals, the bigger signal was guidance ahead: economists said one 25-bps move would matter less than how the central bank frames rates next.