A clear and welcomed signal

The Bank of Canada’s fourth consecutive interest rate reduction on Oct. 23 was just the news that many prospective new-home buyers – not to mention some builders and marketers – have been waiting for. BoC lowered the target for its influential overnight rate a full half-point to 3.75 per cent – the first time it has been below four per cent in two years.

Clear signal

Not only was it welcomed news, it’s also “a clear signal,” says Jesse Abrams, co-founder and CEO of mortgage comparison service Homewise. “It indicates that inflation is cooling faster than expected, and the Bank of Canada is moving to lower rates more quickly than anticipated. This is great news for prospective buyers and those renewing mortgages, as rates – while still higher than two years ago – are becoming more manageable.”

Indeed, declining interest rates and inflation, job growth and other important indexes are among the reasons prospective buyers can feel more buoyant about their purchase plans, as we head into the last couple months of 2024 and look forward to the new year.

As our 2024 Builders’ Annual discusses, with more favourable interest rates, recent significant mortgage reforms and increasing focus on housing policy from all levels of government, things are definitely looking up. And as our Expert Panel and Industry All-Stars and other content in the Annual illustrates, there are plenty of new-home buying opportunities to take advantage of sooner than later.

Turnaround beginning

Evidence of the turnaround can already be seen on the resale side, says Jennifer Pearce, president of the Toronto Regional Real Estate Board. And Building Industry and Land Development Association President Dave Wilkes reminds what more needs to be done on the policy side to build more homes faster, to address other more systemic challenges in the market.

The last few years haven’t exactly been the easiest for the housing industry, with uncertainty relating to supply, interest rates, inflation and pricing. Who could blame prospective homebuyers for feeling a little unsure?

But with these recent developments, and the help of expert sources, columnists and important industry voices in our 2024 GTA Builders’ Annual and our monthly publication HOMES and Condo Life, we are here to change that. To help you make informed and educated homebuying decisions when the time comes.

It’s looking more and more like that time just might be now.