Fourth straight interest rate cut may not bring buyers back to the market just yet

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While the Bank of Canada’s fourth straight cut to its key interest rate could inspire potential homebuyers to get off the sidelines, some commentators say the housing market may not see a huge spark just yet.

Bank of Canada Governor Tiff Macklem holds a press conference at the Bank of Canada in Ottawa on Wednesday, Oct. 23, 2024. THE CANADIAN PRESS/Sean Kilpatrick

But among would-be buyers, many will likely wait for the Bank of Canada's final rate announcement of the year in December before making a move because they are worried the market hasn't yet bottomed out, said Ratesdotca mortgage and real estate expert Victor Tran. The average price of a home sold last month in Canada was $669,630, up 2.1 per cent from September 2023, according to the latest data released by the Canadian Real Estate Association.

"When demand is really high and supply is low again, those bidding wars will be back and it's going to be a pretty stressful experience for a lot of buyers." "In recent weeks, houses have been selling faster, prices are appreciating and there has been an increase in the number of multiple offers on homes."

 

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