
Insight into the Canadian Real Estate Market
Written by Sherry MacLeod, Managing Broker of Cape Breton Realty As a seasoned Realtor with over 30 years of experience, I am currently serving as the managing broker at Cape Breton Realty. In this article, I will provide insights into the recent developments in the Canadian banking sector and their potential impact on the real estate market. This week, the Bank of Canada made the decision to decrease its interest rate by 0.25%, with forecasts suggesting another reduction to 4.5% next month. This move aims to provide relief to homeowners whose mortgages are up for renewal in the next 1-2 years. The rate reduction from 5% to 4.75% last week and the expected further reduction to 4.5% next month can help alleviate some of the concerns surrounding increased mortgage payments. Fluctuations in interest rates often have a ripple effect across both Canada and the US, given their close economic ties. While forecasters and economists do not anticipate a significant increase in real estate prices due to a reduction of 0.25% or 0.50% in interest rates, it is expected to attract some buyers who have been waiting on the sidelines. The decrease in interest rates in Canada compared to the United