The Bank of Canada is about to make a move that could shake up the Canadian housing market. While this news may not come as a shock to those who closely follow economic trends, there is a large percentage of the population that may not fully understand the implications of this decision.
In a recent video, real estate expert Tom Story discusses the potential impact of the Bank of Canada cutting rates by 25 points. While this may not have a significant impact on the financials for most buyers, it could provide some relief for those on the edge of affordability.
Story explains that the rate cut could signal the beginning of a trend, leading to increased confidence among buyers who have been waiting on the sidelines. This could result in a flurry of activity in the market, particularly among first-time homebuyers and investors.
However, Story also points out that the rate cut may lead to a decrease in inventory, particularly in the condo market. Investors who have been struggling with negative cash flow may decide to hold onto their properties in light of the rate cut, potentially reducing the number of available units for sale.
Overall, Story emphasizes the importance of understanding the potential implications of the Bank of Canada’s decision on the housing market. While the rate cut may provide some relief for buyers, it could also lead to increased competition and higher prices in certain segments of the market.
As the real estate market continues to evolve, it’s essential for both buyers and sellers to stay informed and be prepared for any potential changes. And as Story reminds us, “home is where your story begins,” so it’s crucial to make informed decisions when it comes to buying or selling property.
