Is there a light at the end of tunnel? For homeowners, possibly – for homebuyers, maybe now is when the light is shining where the market is slow and it has slowly become a buyers market.
CIBC deputy chief economist Benjamin Tal said that while we are very close to the end of Bank of Canada rate hikes—or maybe already there—the biggest question is when the Bank will being cutting rates.
On that front, he believes the Bank of Canada won’t begin to cut its overnight benchmark rate until the summer of next year.
This signals great news for those with a variable mortgage if it does indeed come to fruition but spells bad news for those looking to buy a home as rate hikes seemed to be one of the biggest factors in our real estate market slowdown currently. Stabilized rates would increase buyer confidence as would any decrease to the rates which would flood the market with buyers (and likely multiple offers and higher prices yet again).
Courtesy of Canadian Mortgage Trends