The Bank of Canada has reduced its policy rate by 25 basis points to 2.75%, signaling a shift in the real estate landscape. With inflation hovering near the 2% target and economic growth outpacing expectations at 2.6% in Q4 2024, past rate cuts have already boosted consumer spending and housing activity. However, rising trade tensions and new tariffs from the U.S. could slow future growth, impacting both buyer sentiment and business investment. The labour market remains stable, but signs of slowing job creation suggest that economic momentum may wane in the coming months.

For sellers, this rate cut presents an opportunity to capitalize on motivated buyers who are eager to secure financing before further economic uncertainty affects market confidence. With inflation expected to rise to 2.5% by March, waiting too long could mean missing out on today’s demand and favorable conditions.

For buyers and investors, this shift means lower borrowing costs but also potential price adjustments as the market reacts to economic shifts. Strategic decision-making is key.

🏡 Thinking about listing your home? Now is the time to maximize your sale price while demand remains strong! Let’s discuss how today’s announcement impacts your selling strategy. Call me today!

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