WATERLOO REGION HOME SALES COOL IN NOVEMBER
BANK OF CANADA HOLDS INTEREST RATE AGAIN – ECONOMIST PREDICTS RATE CUTS WILL START HAPPENING IN 2024
“Last month, the number of homes sold followed their typical pattern of cooling to match the weather, but with consumer confidence continuing to drop, we saw sales slump to their lowest level for November in over a decade,” says Christal Moura, president of WRAR. “With many still waiting to see what happens with interest rates in the months to come, homes are taking a little longer to sell, there’s more inventory on the market, all contributing to sale prices levelling off.”
“Canadians are feeling the pinch of affordability, leading to price adjustments in the housing market of Waterloo Region,” says Moura. “For prospective homebuyers, this slowdown presents an opportunity to enter the market during a less competitive phase and enjoy the advantages of homeownership in the long run.”
The bank raised the rate to its current level in July, but has stood still ever since, as the Canadian economy shows signs of cooling.
“The slowdown in the economy is reducing inflationary pressures in a broadening range of goods and services prices,” the bank said in announcing its decision.
“Governing Council is still concerned about risks to the outlook for inflation and remains prepared to raise the policy rate further if needed,” the bank, led by governor Tiff Macklem, said.
For economist Royce Mendes with Desjardins, however, that’s mostly an empty threat aimed at making sure markets don’t react too forcefully in assuming cuts are coming.
“Officials are probably just hesitant to prematurely declare victory in their battle with inflation,” Mendes said.