As November approaches and the Bank of Canada announced no changes to the overnight rate yesterday, now is a great time to learn what to expect in the housing market this winter!
With the Bank of Canada currently maintaining the 5% policy rate, many hope this will be the peak in overnight rate changes. If so, homeowners and potential buyers will have some breathing room. Learn more about the October 25, 2023 rate announcement>>
The recent rate hikes over the spring and summer had slowed the housing and mortgage markets as the rise in mortgage rates unsurprisingly alarmed potential buyers. As a result, housing affordability became a bigger hurdle and led to a slight decrease in home prices by 6% in major markets over the summer.
Analysts are forecasting a more robust housing market as we turn the corner into winter and start looking ahead to the coming year. The expectation is that the Bank of Canada will gradually cut interest rates by mid-year, allowing potential buyers to navigate their affordability better.
As the housing supply shortage continues, new listings will likely rise and provide much-needed new inventory. As we move into 2024 and see interest rates decrease, motivated sellers will move off the sidelines, and housing demand is expected to be resilient.
For anyone considering purchasing a new home in the new year, getting pre-approved to prepare for when the time comes to move quickly in an unpredictable market is important. I can guarantee you a pre-approval for 120 days while you shop for a home. This way, you will avoid being impacted by potential rate changes and can adequately estimate your budget for mortgage costs.
Plus, a mortgage pre-approval will indicate to the seller that you can obtain financing (assuming everything stays the same between now and the purchase with your job, savings, etc.), which is vital during the unpredictable economic landscape.
As a local mortgage broker, I am here to provide expert, unbiased advice to anyone with concerns, questions or wanting to get started on their pre-approval today!