07:43 AM EST, 12/19/2024 (MT Newswires) -- Canada's housing market is stirring on lower borrowing costs and ahead of new mortgage rules, said Bank of Montreal (BMO).

However, there is a clear separation between segments, noted the bank. Detached home prices have risen steadily since the Bank of Canada began chopping rates in June, turning up

even in the expensive Greater Toronto region.

By contrast, condo prices continue to sag in many areas, led by a 5% year-over-year drop in Toronto. Pent-up demand is fanning the detached market, as many prospective buyers were just waiting for affordability to improve to jump in, stated BMO.

Meantime, an investors' strike and mounting completions continue to depress condo values, pointed out the bank.

With immigration curbs taking root, the condo space could be the last to recover, it added.