This article is part of Global News’ Home School series, which provides Canadians the basics they need to know about the housing market that were not taught in school.
Borrowing costs are starting to drop after the Bank of Canada’s first interest rate cut of the cycle, sparking speculation in the housing market about how buyers and sellers will react. The housing market has cooled significantly from the pandemic-era frenzy, with the Bank of Canada’s quarter-point cut indicating a turning point.
Data from the Canadian Real Estate Association shows a slowdown in many housing markets this spring, with the decision on the Bank of Canada’s easing cycle determining the activity for the rest of the year.
Real estate experts suggest that waiting for the ideal mortgage rate might cause buyers to miss out on better deals in the current market. With further rate decreases expected, competition for listings is likely to increase, potentially leading to bidding wars and rising home values.
Prospective buyers are advised to consider both the mortgage rate they qualify for and the purchase price to make informed decisions that align with their financial goals. While interest rate drops can stimulate housing activity, factors like the job market and housing supply can influence price movements regionally.
Ultimately, weighing emotion against financial realities is crucial when making housing decisions, as timing the market may not always guarantee the best outcomes. Canadians are encouraged to prioritize their long-term financial well-being while navigating the evolving housing landscape.
— with files from Global News’s Anne Gaviola