Bank of Canada Holds Interest Rates at 5%

As expected, BOC has made no change to the key interest rate for the fourth consecutive decision, holding it at a steady 5%. What does that mean for you as a buyer?

Well a couple of things...

Firstly, this brings confidence back in buyers due to the unlikeliness of another rate hike, bringing us closer to the light at the end of the tunnel -- rate cuts. Economists suggest that in the spring we should expect to see the first rate cut, however the central bank made a point to say that inflation is too high. So rate cuts will really depend on what we see in terms of those inflation numbers.

As we begin to see the rise in buyer confidence, we will start to see the market pick up again (we are already seeing this happen!!). This means more competitive and multiple offer situations, and average price increases in homes.

With the next rate announcement being in March, it is highly suggested to jump into the market while buyer activity is cool before the spring market brings on the heat!