announced by the Bank of Canada last week
– will mostly benefit first-time investors and homebuyers, say experts.
“Getting into the market is quite affordable with mortgage rates today,” says Ira Jelinek, a real estate agent with Harvey Kalles in Toronto
. “It’s better for first-time buyers to take that plunge now. You never win trying to time the market.”
Many of these prospective buyers entering the market for the first time will look toward condos for their inaugural property purchase – a move that Elli Davis, an agent with Royal LePage, says is aided by the BoC’s rate cut.
“The lower rates will enable people who might not have been able to afford a mortgage before,” she says.
However, the lower rates will offer a different story to investors or homeowners who already own a condo and are hoping to make the jump to a detached single-family home.
“It’s two steps forward, one step back,” says Jelinek. “It’s going to bring in more buyers, but it will also drive up the prices.”
Indeed, the price gap between condos and detached single-family homes in the city will likely widen, especially considering the continued lack of available listings in some of Canada’s larger cities.
“A lot of people who predicted prices would go down were wrong,” says Davis. “Prices don’t seem to be going lower.”
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Lower interest rates –