On Wednesday the 8th of March, The Bank of Canada held its benchmark interest rate. Economists and Real Estate players alike agree that this will have major implications for the Canadian housing market. Expect to see these implications, this spring and onward if it is continually held.
This decision by the Bank of Canada could mean the bottom of the housing correction. But there is still a bit of uncertainty for the future, as a hike is still looming over our heads.
Housing Market Seasonality Returning
Even before the decision for the hold was made we were seeing some housing markets in the country showing signs of life since the 2022 downturn. When the Bank of Canada made their announcement on Wednesday it didn’t provide much certainty along with the announcement.
The Central Bank is maintaining a wait and see approach for its policy rate so we could see more rate increases there in 2023. Let’s hope there are no additional economic shocks that send the inflation forecast off its trajectory.
The forecast issued by the Royal Bank of Canada earlier this week suggests we can look for the bottom of the housing market to show up around springtime. Based on inventory in many markets it looks like sellers will still have the upper hand over buyers during the spring. While the options for buyers are limited the options for building are not.
Have you considered building your home? If you have been looking at housing inventory with no hope in sight. Instead of purchasing an existing home, maybe it’s time to explore building your home with us. Reach out to us and let us help make your dream of owning a home a reality.