07:29 AM EST, 01/08/2025 (MT Newswires) -- Toronto home sales slumped in December in seasonally-adjusted terms, leaving them down a modest 1.8% from year-ago levels, said Bank of Montreal (BMO).

New listings were up a much stronger 20.2% year over year, leaving the market balance still softer than at the start of the year, despite Bank of Canada easing.

Prices broadly remain stable on a month-to-month basis

and from a year ago, said the bank.

There are signs across the country that the worst of the correction is behind Canada, but the case for a trampoline-like rebound is also a tough one, stated BMO.

Ultimately it comes down to affordability and, at current

price levels, mortgage rates haven't sunk quite far enough

to tip the calculus, pointed out the bank. With five-year fixed rates now in the low-4% range, even three more BoC rate cuts this year would only bring variable rates down to similar levels.

If what you see is what you'll get for mortgage rates this

year, it might lead to a "stable" or "flat" or "rangebound" market in 2025, added BMO