The Bank of Canada recently lowered its key interest rate by a quarter of a percentage point to 4.75%, the first cut in over four years. This decision could be the signal that many potential homebuyers have been waiting for.
Current Market Situation:
In cities like Toronto, Calgary, and Vancouver, there’s been a surge in new home listings. For example, the Greater Toronto Area (GTA) saw a 21.1% increase in new listings in May compared to last year. However, home sales have dropped, with the GTA experiencing a 21.7% decline in sales during the same period.
Gradual Market Recovery:
The market is expected to recover slowly. Many potential buyers are waiting for even larger rate cuts before resuming their search. Lower interest rates will reduce monthly mortgage payments, making homeownership more affordable, especially for first-time buyers. This is a great time to buy.
Conclusion:
The Bank of Canada’s interest rate cut is a promising sign for the real estate market. As borrowing costs decrease, more buyers are likely to enter the market, potentially driving up home prices. If you’re considering buying a home, now might be a good time to start your search.
For further details or assistance with the real estate in the GTA, feel free to contact
Paul Bendavid
RE/MAX Realtron Realty Inc.
Cell: 647-988-7355
Office: +1 905 539 9511
Address: 183 Willowdale Ave, Toronto.