Bank of Canada Holds Rates Steady: Real Estate Market Update – December 6, 2023

As anticipated by many, the Bank of Canada opted to keep the interest rate unchanged at 5% for the third consecutive announcement. This decision comes amid a backdrop of cautious optimism and a watchful eye on consumer spending trends. The next announcement is slated for January 24, and we'll be sure to keep you informed.

In terms of market dynamics, December typically sees a slowdown, but there are intriguing nuances worth noting. Homes priced under the 325k mark continue to attract significant attention. Properties in the 250k to 300k range are particularly hot, with multiple offers and even backup offers becoming common. This trend is especially evident for affordable homes sought by first-time buyers and investors eyeing rental properties.

Interestingly, despite the seasonal dip, properties listed under 325k are thriving. Houses in the 250k to 300k range are receiving multiple offers, and there's a notable demand for rental properties. With high rental rates and low vacancies, investors are keen on acquiring properties to meet the rising demand for rental housing.

A noteworthy example from our local market involves fourplexes listed between 500k and 600k. These properties received offers on the first day of being on the market, underscoring the enthusiasm among investors looking to expand their portfolios. This trend aligns with the broader market movement, with investors seizing opportunities to address the needs of those unable to buy or find suitable homes.

In conclusion, the real estate market remains dynamic and responsive to various factors. As we navigate through December, the trends in affordable housing and investor activity provide valuable insights. Stay tuned for further updates, and we wish you all a fantastic week ahead!