The Bank of Canada maintains its policy interest rate at 5% – Impacts and advice for real estate buyers and sellers.
A drop on the horizon?
Canada’s annual inflation rate reached 3.4% in December, deviating from the Bank of Canada’s target of 2%. In this context, the Bank might adopt a cautious approach before considering a reduction in its policy interest rate for the next quarter.
Buying or selling in this current economic context?
Buyers: Should you qualify for the current mortgage rates, it may be wise to purchase now. Doing so can help you sidestep the heightened competition likely to arise if mortgage rates fall, an event anticipated to occur by the end of 2024.
Sellers: The real estate market is gradually moving towards equilibrium, yet it continues to favour sellers, largely because of the limited inventory in the resale market. Therefore, it remains an ideal time to sell.
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