Are Buyers Finally Responding to Rate Cuts?
Real estate sales in Canada’s largest markets surged in October as buyers jumped at the opportunity to purchase homes following recent interest rate cuts. While this uptick is positive news for Canada’s struggling real estate market, one month of growth doesn’t establish a lasting trend. The Bank of Canada is expected to reduce rates again on December 11, just in time for the holiday season, potentially introducing a significant cut that could drive variable mortgage rates to their lowest levels in years.
Meanwhile, average rents in Canada declined for the first time since 2021. According to recent data from Rentals.ca and Urbanation:
Average monthly rents dropped by 1.2% in October 2023, now standing at $2,152.
However, record-high consumer and business insolvencies paint a concerning picture of financial strain affecting households and businesses nationwide.
This financial stress may intensify next year as economic growth slows and many mortgages are renewed at higher rates.
Mortgage rates remain competitive, with some lenders offering fixed rates as low as 4.39% and variable rates as low as 4.95%. If you need financial assistance, please don’t hesitate to reach out.