The Canadian real estate market is showing signs of anxiety as potential mortgage rate increases loom, according to a recent survey by Zoocasa. As the Bank of Canada prepares for its rate decision, the survey indicates a rising concern among property buyers, particularly first-time homeowners.
The survey revealed that 79.1% of respondents now fear that higher rates will negatively affect their sentiment towards real estate, a significant increase from the spring’s figure of 71.3%. First-time homebuyers are expressing an even higher level of concern, with 86.3% indicating apprehension about possible rate hikes.
The Bank of Canada’s current policy rate stands at five per cent, a decision that was viewed positively by 23.3% of respondents earlier this year. Despite the growing concern among homebuyers, economists largely forecast the Bank to maintain this rate in its upcoming decision.
The anticipation surrounding the Bank’s decision underscores the sensitivity of the real estate market to interest rates, which directly influence mortgage costs. A rise in rates could potentially deter prospective buyers and slow down the housing market activity.
Zoocasa’s survey provides a snapshot into the sentiments of homebuyers as they navigate the uncertainties of the market. The results highlight the need for potential buyers to stay informed about economic indicators and monetary policy decisions that could impact their ability to purchase property in an already challenging environment.
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