07:55 AM EDT, 08/15/2024 (MT Newswires) -- Bank of Montreal (BMO) said that the Canadian Real Estate Association (CREA) will release existing home sales for July at 9 a.m. ET on Thursday.

The bank noted that the housing market seemed to have avoided the July heat wave as activity remained subdued, suggesting minimal impact from the Bank of Canada's (BoC) rate cuts so far. Nationally, sales were likely flat-to-higher from the prior month, leaving them 3% above year-ago levels.

Meantime, rising inventories continue to put downward pressure on prices and BMO expects yearly growth in average prices to be just 0.5%, and the quality-adjusted MLS HPI to fall 4.5% y/y. With additional rate relief expected in the coming months, housing activity is poised to firm. However, still-strained affordability and rising new home completions will help the market avoid a more significant rally.

At 8:30 a.m. ET Thursday, Canadian wholesale trade is projected to drop 0.6% m/m in June, in line with the early indicator, stated BMO. This is after falling 0.8% m/m in May.

Finally, Statistics Canada's new motor vehicle sales are expected to increase by 2.0% y/y in June (industry figures on light vehicle sales were flat, but they rebounded to a double-digit y/y clip in July).

The US dollar (USD) is faintly softer (BBDXY -0.02%) with the Canadian dollar (CAD or loonie) firmer (CAD per USD -0.07%), added the bank.