After the Bank of Canada cut the interest rate for the seventh time in a row Wednesday, experts say that’s good news for people looking to buy or sell a home in Canada.
Home prices have been stable for the past two-and-a-half years and according to Phil Soper, Royal LePage president and CEO, who spoke with CP24 on Wednesday, the situation will get even better.
“Financially, it’s going to make homes more affordable,” Soper says, noting the cost of borrowing has gone down, while wages and salaries have increased. “It’s not often if you look back at the last 50 years that housing actually gets more affordable in Canada and Southern Ontario, but that’s what’s happening.”
However, Soper says the disruptions from the actions of U.S. President Donald Trump will create “pressure” and “stress” for would-be buyers and sellers.
The uncertainty from trade wars and tariffs will make those affected by the economic disruptions wary about buying or selling homes, says Michael Froese, broker and managing partner of Royal LePage Prime Real Estate in Winnipeg, in an interview with CTV News Winnipeg on Wednesday.
“This might not be the year for them to make a super large investment,” Froese says.
But the Bank of Canada rate cut still brings some good news. Would-be homebuyers, homeowners with variable rate mortgages, and those with floating lines of credit -- loans that have interest rates that fluctuate, based on the prime rate set by banks -- will benefit from the rate cut, he says.
“However, what we do know what is certain is that life still happens,” he says. “Regardless if there’s trade wars or tariffs, babies are being born every single day, and these life events are what triggers a lot of homebuyers and home sellers to make a decision to either buy or sell.”
Watch the videos above for the full interviews.
Correction
This article has been updated to clarify a description of the loans that may benefit from a rate cut.
