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Home Bank of Canada

BoC: Interest Rates Remain on Pause. What it Means for Prospective Buyers and Sellers

Patti Cosgarea by Patti Cosgarea
April 12, 2023
in Bank of Canada, Mortgage News, Mortgages
Reading Time: 3 mins read
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Inflation remains high, however, it is trending downward and moving closer to the Bank of Canada’s (BoC) goal of 2%. This has led the BoC to announce today that it is holding its policy interest rate again at 4.50%. 

Now that the spring market is in full swing, what does the rate announcement mean for prospective buyers and sellers?

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Good News for Buyers: Fixed Rates are Trending Down

The spring market tends to be one of the busiest times of year for Canadian real estate markets. Prospective buyers and sellers often come to market following March break and the Easter long weekend and during this time, fixed mortgage rates have been trending downward. “Fixed mortgage rates have been trending lower because bond yields have stabilized as fears of a global banking meltdown have dissipated,” explains James Laird, Co-CEO of Ratehub.ca and President of CanWise mortgage lender. “After March break is when lenders tend to come out with their spring mortgage promotions, which is also helping with the downward pressure on rates,” Laird continues. 

  • Read: New Canadian Government Budget 2023: What Does it Mean for Housing Affordability?

Sellers: Lack of Inventory is Keeping Prices High and Competition Steep

The Toronto region real estate market is already seeing the influence of spring as sales, average prices, and new listings all rose last month. Although the Toronto Regional Real Estate Board (TRREB) reported that new listings increased 33.7% month-over-month, reaching over 11,000 new listings for the first time since September 2022, inventory remains below long-term averages in many Canadian markets. 

  • Read: GTA Home Sales and Competition Up as Toronto Region Buyers Step off Sidelines: TRREB

The combination of market interest and competition increasing coupled with low inventory is causing home prices to increase. “Home prices have stabilized and are trending upwards due to falling mortgage rates and lack of housing supply,” says Laird. In March, homes were spending an average of 27 days on market in the Toronto region, however, properties in some cities including Ajax, Pickering, and Whitby were spending just 15 days or less on market last month indicating that sellers are benefiting from market conditions. 

To learn more, read our spring market predictions and give us a call today to connect to a local real estate agent. 

Considering a move the spring?
Contact us today to speak to a Realtor in your area

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Patti Cosgarea

Patti Cosgarea

Patti Cosgarea is an accomplished public relations professional with a passion for digital communications and all things real estate. She dedicates her creative prowess to crafting compelling content that empowers and guides North Americans on their real estate journeys. With a keen eye for detail and a knack for storytelling, Patti ensures that Zoocasa's message resonates with its audience, whether it’s first-time home buyers or experienced investors, making complex real estate concepts accessible to all. Her love for real estate extends to her personal life. When she’s not analyzing Canadian and U.S. real estate data, you can find her wielding a hammer and paintbrush, renovating her townhouse in Kitchener. These DIY projects showcase her creativity and passion for design, learning as she goes to offer her insights to others working on transforming their house into a home. Patti’s real estate insights and articles have been published in BNN Bloomberg, CTV News, the Globe and Mail, and her interviews and quotes about current market conditions can be found on the National Post, Business in Vancouver, Global News and more.

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