Bank of Canada 4th Rate Cut to 3.75%

Hi everyone, this is Ken Wong, Team Leader of the KSK Team at One Collective Realty. Welcome back to my channel! Today is October 23, 2024, and the Bank of Canada has just announced a rate cut, bringing the overnight rate down to 3.75%. That’s a 0.5% reduction, which is bigger than expected.
So, what does this rate cut mean for the real estate market? I’ll break it down for you over time, but the first thing to note is that this cut is larger than the previous ones in 2024, which were only about 0.25%. With this significant reduction, we can expect a noticeable boost in housing demand. Many potential buyers, or those who have been sitting on the sidelines, might take advantage of this opportunity, which will likely drive up market activity.
In fact, market analysts are predicting that the central bank may cut rates again in December, which would make borrowing even cheaper. This could create better conditions for buyers, with increased lending capacity and more favorable purchasing terms, which might prompt more families to enter the market sooner.
Right now, it’s important for buyers to make the most of this window of opportunity, especially with the economy showing signs of recovery. Lower interest rates mean lower monthly payments, which could draw in more buyers and investors alike. But there’s a flip side-while borrowing costs are decreasing, demand is expected to rise sharply, making the market more competitive and potentially driving up home prices.
Given the shifting market dynamics, I encourage buyers to consider acting sooner rather than later. This could be a great chance to secure a property at a more competitive price before the competition heats up. For families and investors who are on the fence, now might be the right time to make your move, especially with the possibility of higher prices and fewer options in the coming months.
That’s all for today’s analysis. Thanks again for joining me on the channel. I’m Ken Wong from One Collective Realty, and I appreciate your support. See you next time!
👍 Ken Wong
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📞 604-767-8793
1NE Collective Realty Inc.