Will Interest Rate Cuts Affect New Homes for Sale Edmonton?

On Wednesday, June 5th, the Bank of Canada made its first interest rate cut in over four years. According to Global News, experts have noted that the change in the key lending rate will have a psychological impact on the Canadian housing market. After sitting at 5 percent since July 2023, the rate has finally been cut back to 4.75 percent. To help you better understand how interest rate cuts will affect new homes for sale Edmonton, we will provide you with a brief market analysis. Follow along below to learn more about the current climate of Edmonton real estate.

New Homes for Sale in Edmonton Won’t Change Much

Real estate experts in Edmonton forecast that the recent interest rate reductions will have minimal impact on the current market. With properties already selling at a steady rate, it’s unlikely that this cut will significantly alter the momentum. This slight adjustment in the key lending rate is not expected to make a substantial difference in people’s mortgages. Moreover, for those who higher interest rates have sidelined, this cut will be of minimal help. In most cases, if you were not close to being able to purchase a home before the rate cuts, you will unlikely qualify now. 

With this said, those with variable-rate mortgages are the ones who will see the greatest impact of recent rate cuts. Monthly payments for the average variable rate mortgage holder could drop by $100 per month. For homeowners with fixed-rate mortgages, it could be a bit longer before the effects of the rate cut set in. 

Buyers and sellers should be wary that even though rates are coming down, they will not be cut back to the extreme lows of the pandemic. The Bank of Canada will continue to make small rate adjustments over the remainder of this year and next. 

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Staying up to date with the latest real estate news is critical in your home-buying or selling journey. For more information about buying or selling new homes for sale in Edmonton, contact me today! I’d be happy to help you attain your real estate goals. Be sure to check out my social media for the latest updates and more. I look forward to working with you shortly!