All eyes are on the fall housing market

Rates Low, Supply Up: Will Sellers Be Disappointed?


With Canada’s CPI inflation dropping to 2.5% and the Bank of Canada cutting rates on September 4, along with signals from the Fed about potential cuts,

While falling mortgage rates could boost demand, it's crucial to monitor new listings and the balance between supply and demand. Many sellers in Vancouver and Toronto have been waiting for lower rates to cash in. However, the belief that rate cuts automatically signal a ‘bullish market’ may be overly optimistic.

Remember, during the previous period of rising rates, consumers hesitated for 18 months from listing or buying. This was largely due to affordability issues rather than an immediate change in what buyers could afford. It's more about confidence, but budgets tend to stay the same.

Additionally, new developments coming onto the market this year will increase inventory levels. Buyers of presale condos from 3-5 years ago may find themselves unable to keep their units under current tenancy laws in BC and might be forced to sell.

In conclusion: If you're a seller contemplating a move and have been holding off due to economic uncertainties or timing concerns, proceed with caution. You might face fewer offers or lower offers than expected. Real estate is a long game, much like golf. Market reactions to lower interest rates are unpredictable and can swing either way.

Consult with your real estate advisor to understand the current market cycle, timing, and seasonal trends to navigate the sale process successfully. Feel free to reach out with any questions at [email protected].