TD Highlights Housing Market Resilience Amid Rising Bond Yields

TD Economics lowered its Canadian home sales forecast, projecting a 5.3% decline this year due to rising bond yields affecting fixed mortgage rates. Average home prices are expected to remain flat in 2026, with a modest 1.7% rise in 2027, contingent on yields easing late next year. Sales will stay below pre-pandemic levels, with uneven provincial impacts: Ontario and B.C. see declines then modest rebounds, while Prince Edward Island and Alberta face sharper sales drops.