Experts are weighing in on how the real estate market will be impacted by the Bank of Canada rate cut this week.
In the face of a tariff war with the U.S., the Bank of Canada opted to lower the interest rate to 2.75 per cent.
The Bank noted the economic uncertainty in its decision and said “heightened trade tensions and tariffs imposed by the United States will likely slow the pace of economic activity and increase inflationary pressures in Canada.”
The last time the overnight lending rate was below three per cent was in September 2022.
So, how will the rate cut impact the real estate market?
Lower rates will mean more favourable monthly payments and greater loan accessibility, said real estate company Coldwell Banker.
For sellers, it could represent a window of opportunity to list their properties at a time when interest rates make real estate more attractive to buyers.
“This dynamic could lead to heightened competition in certain markets, further driving …