Results for: Housing Market Recovery

The U.S. housing market is exhibiting promising signs of recovery, as evidenced by a significant increase in home listings in March 2024. According to data from Redfin, new listings surged by 15% during the four-week period ending March 17, 2024, marking the most substantial year-on-year increase since May 2023. Additionally, home prices have also witnessed a 6.7% uptick over the past year. Despite the lingering effects of the pandemic, the housing sector has demonstrated resilience, with market trends mirroring pre-pandemic patterns. Mortgage rates have stabilized after the fluctuations experienced during the pandemic peak, contributing to the revival of home price growth.

The Canadian dollar (CAD) has been on a four-day winning streak, but this recovery follows a steep decline in the previous four days. Despite ongoing concerns about interest rate cuts, the currency has benefited from the following factors: A government hike in capital gains taxes, which eased fears of more severe corporate or windfall taxes, and a recovery in the housing market. While the rebound is notable, it may not be significant in the long term as the Bank of Canada (BOC) is expected to cut rates more than the Federal Reserve (Fed). The outlook for CAD may remain favorable due to potential global soft landing and upside risks in China. However, analysts advise caution and suggest buying USD/CAD near 1.36.