Today the bank of Canada announced the long awaited interest rate cut this morning after 6 consecutive holds. Starting with a very cautious -0.25%, changing the new target to 4.75% , this announces the new shifting in the Real Estate Market , encouraging more buyers that were waiting in the side lines to start their new journey , in the table below you can see the most recent announces from the BoC.
| Date | Target (%) | Change (%) |
|
June 5, 2024 |
4.75 |
-0.25 |
| April 10, 2024 | 5.00 | 0.0 |
| March 6, 2024 | 5.00 | 0.0 |
| January 24, 2024 | 5.00 | 0.0 |
| December 6 , 2023 | 5.0 | 0.0 |
| October 25 , 2023 | 5.0 | 0.0 |
| Septermber 6, 2023 | 5.0 | 0.0 |
| July 12, 2023 | 5.0 | +0.25 |
| June 7, 2023 | 4.75 | +0.25 |
| April 12 , 2023 | 4.50 | 0.0 |
| March 8 , 2023 | 4.50 | 0.0 |
Even though the landscape is staring to look nice for the market, it will take more of one decline to truly perceive the change in your pocket, but starting slow is a wise movement in the right direction. With continued evidence that underlying inflation is easing, they agreed that monetary policy no longer needs to be as restrictive as it's been , but a very close monitoring to the inflation rate will continue and although CPI inflation eased further on April to 2.7%, risks to the inflation outlook remain.
What is to be expected then? .
What we will start noticing is a change of sentiment rearranging and slowly shifting from a buyers market to a more balanced one, this is great news for those who are in the look out to their your property in the following months, you could expect more visits and attention and a possible increase in your market value. More over, if too much of easement is allowed, we could be facing an exacerbation in the buying confidence, hurting more the already soared market.
The next announcement is scheduled for July 24th of this year and if everything goes accordingly a systematic change will start forming for a better and healthier forecast, that will bring opportunities to buyers, sellers, investors and renters.
Thank you for taking the time to read this small column, if you have gotten this far is because you are have interest in the Real Estate Market condition and perhaps you are in the look out for more guidance, i can help you achieve your goals and whether your interest are to buy, sell or invest, I'm here to help. if you feel like sharing , commenting , etc . please do so and reach me out for more, through my different channels.
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