What the interest rate cut means for real estate in Canada [Video]

Some real estate experts are predicting a rebound in market following the Bank of Canada interest rate cut — but likely not right away.

The Bank of Canada just announced its fourth consecutive interest rate cut since June. Its policy rate now stands at 3.75 per cent, down from a height of five per cent.

This is the first time the rate has been below four per cent in two years.

With the latest cut, real estate brokerage Royal LePage suggested activity levels in Canada’s housing markets could spike this spring as consumers continue to gain confidence.

“Activity in Canada’s housing market has been sluggish in many regions due to higher borrowing costs, but today’s more aggressive cut to lending rates could cause the tide to turn quickly,” said Phil Soper, president and CEO of Royal LePage.

More homebuyers are expected to come off of the sidelines, Soper said.

“In turn, rising demand will cause home prices to increase more rapidly, eliminating …