The BoC Rates to ease mid 2024 – when is a good time to buy your new home?
Friday Dec 22nd, 2023
Experts say that interest hikes should be over, especially after the latest update from the Bank of Canada (BoC) by holding the interest rate steady for the third consecutive time, this fell quite in line with economist expectations as there is “no excess demand” in the economy, nevertheless the BoC is prepared to raise the stakes again if such measures are needed.
The Canada inflation rate stalled at 3.1% in November of this year, matching the same results as in October according to statistics Canada. To economists that was quite shocking as they were expecting it to be below the 3 % mark, but the reality is that it is too premature to start easing out the measures as more data needs to be analyzed to dissect the true meanings and find the top offenders that pushes up this inflation, plus taking the wrong direction could spike up the real estate market in ways that would only slow us down.
So what does this mean to the real estate market?
The latest report for the past November according to the Toronto Real Estate Board, the high borrowing costs and the uncertainty in the economic conditions continue to dominate in the market, making the home sales 6% less and more new listings, about 16.5% more compare to November ‘22, therefore the more offer and less demand drives prices down. But you might be asking how far down are those prices going to end?. Well, if we bring back to mind the pandemic years where the prices in the real estate market were sky rocketing, those days are gone and the much desired correction that all wanted is happening as I write this article, prices and tendencies are shifting and a more balanced market is taking place, in which you can negotiate conditions, prices and have more options available. If you have been preparing yourself to buy your new home, take a chance, because now is a good time providing that you can afford the high interest rates, also have in mind that economist forecast an interest rate cut as early as this following Sprint of year ’24.
Bond markets anticipate rate cuts article. – Insured five-year fix mortgage rates below 5%?
Of course, it is of vital importance to work with a competent realtor who knows this information and provides you with strategies so that your experience when buying or selling your home or investment, is as pleasant as possible.
If you want to buy or sell or invest, don’t hesitate to contact me through my different channels (Email, Facebook, Instagram,chat or directly through my phone) ,feel free to share if you think this might help someone you know.
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