How Home Buyers and Sellers Can Navigate Rates Based on the Bank of Canada’s Decisions

By Sherry MacLeod
Managing Broker at Cape Breton Realty
March 12, 2024

After my trip to Vegas for the Leading RE conference and hearing economists’ forecasts about the US, Canadian, and European economies, I felt compelled to share some valuable insights with you. Having lived through the era of 17 percent interest rates on mortgages, it’s intriguing to hear discussions about waiting for rates to go back down. Here is what economists were saying.

Contrary to nostalgic expectations of a return to 1-2 percent rates, Dr. Marci Rossell predicts a more modest decline in interest rates before the end of the year. While this anticipated decrease will undoubtedly stimulate demand in our market, it’s essential to temper expectations and recognize that rates are unlikely to plummet to historic lows.

Amidst these economic deliberations, our local housing market is experiencing a subtle shift. Inventory is gradually increasing, alleviating some of the pressure that characterized the frenzied multiple-offer scenarios during the height of the pandemic. However, this doesn’t signify a buyer’s paradise just yet.

As we anticipate the convergence of declining interest rates and expanding inventory, it’s prudent to acknowledge the nuanced dynamics at play. While certain price ranges may tilt towards a seller’s market, buyers and sellers alike must approach transactions with a nuanced understanding of market conditions and a willingness to adapt to evolving circumstances.

In the face of uncertainty, it’s imperative to remain informed, agile, and proactive in navigating the intricacies of the housing market. Whether you’re a homeowner, buyer, or seller, seeking the assistance of an experienced Realtor can provide invaluable guidance through an ever-changing landscape.

By leveraging insights from economic forecasts, drawing upon personal experiences, and tapping into the expertise of seasoned professionals, individuals can make informed decisions that safeguard their financial interests and capitalize on emerging opportunities.

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