Real estate experts say many potential homebuyers are waiting for rate cuts before entering the real estate market following the Bank of Canada’s latest decision to hold rates, but demand remains high for some properties.
Victor Tran, mortgage and real estate expert at Ratesdotca, said in a statement to BNNBloomberg.ca Wednesday that the housing market “continues to be in a holding pattern” characterized by tight supply and “stiff competition for desirable properties.”
“While some consumers are willing to take on higher interest rates now to avoid the expected frothy market when rates drop, others are tired of waiting for rate drops and are losing faith that rates will decline as far and as fast as previously predicted and are stepping back from the search,” Tran said.
Tran’s comments come after the Bank of Canada elected to hold its policy rate at five per cent on Wednesday for the sixth consecutive meeting, while officials signalled rate cuts are near but more evidence is needed to show easing inflationary pressures. The hold was widely expected by economists tracked by Bloomberg.
However, others think the move could spur interest in certain markets amid widespread sentiment that Wednesday’s rate hold will be the last before the Bank of Canada pivots to bring rates lower.
“This rate hold may give more Canadian buyers the confidence to purchase a home now, believing that interest rates will either remain the same or decrease later in the year,” Leah Zlatkin, an expert with LowestRates.ca and licensed mortgage broker, said in a statement to BNNBloomberg.ca Wednesday.
She highlighted that housing inventory in the Greater Toronto Area remains low, as average sales prices rose 1.3 per cent in March. According to Zlatkin, the price rise is indicative of increased competition for homes in the region as buyers are prepared to
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