Welcome Back To The Potential Moment Many Have Been Waiting For

Interest rates have been the buzzword since 2022, and similar to “How’s the real estate market?” and discussions about the weather, interest rates have been at the forefront of people’s conversations.  Many homeowners have been ‘feeling the squeeze.’ Weathering it. And waiting for some reprieve from the consistent eight increases over the past couple of years. Forty-five percent of mortgages are renewing across Canada over the next two years, and homeowners have been watching those rates closely, hoping for a drop.

While nothing is guaranteed, the bond yields have come down a whole percentage point.  And people much smarter than us are predicting the direction of the interest rates.  So far, it seems to be unanimous - they are coming down.  In a couple of days, the Bank of Canada will make an announcement, but many predict this announcement will likely be an interest rate hold. Approximately every six weeks, the Bank of Canada makes an announcement, and so far, the chitter chatter is pointing to an interest rate drop in late spring or early summer.  

The caveat is keeping inflation at bay.  Dropping rates too soon might create a Spring Market Spending Frenzy, which the government wants to avoid. Keeping inflation predictable and on a steady increase is a prime priority.  But overall, the buzz is that rates are coming down this year.  Good news for the 45% of Canadians with renewals on the horizon and homebuyers looking to enter the market, as they can factor lower interest into their affordability calculation.  

This year, our New Year's Resolution is to read that crystal ball and risk being wrong in our predictions. Doing research, following the economy and the market analytics keeps our ears to the ground and opportunity at the forefront. Yes, we are hypothesizing and predicting based on information; however, by the time numbers are reported, that market moment has passed.  Staying ahead of the game is required for investing. It comes with risk. And reward.  

The real estate market picked up early this year. January has been busy for us.  December remained steady. Check out our Market Handbook for the analytics and data, and feel free to reach out with any questions.  

Cheers,

Cari and Paul