It’s hard enough for homebuyers these days, with questions about housing supply, a new mayor in Toronto, other government issues, inflation and rising interest rates.

The Bank of Canada didn’t do this scenario any favours on July 12, either, by raising its target for the overnight rate by 25 basis points to 5.0 per cent. It was the second consecutive increase by BoC, after holding the rate at 4.5 per cent for three consecutive announcements.

Overall impact

Not to dismiss the concerns for inflation and the larger economy that prompts BoC to take such action, higher rates cost everyone – buyers, yes, but also developers and suppliers. They also cause some to pause their homebuying plans.

Meanwhile, we’re all still concerned about the overall impact limited housing supply and steady demand has on affordability, at a time when governments at every level are vowing to do what they can to build more homes.

Who can blame prospective homebuyers from feeling a little unsure of what, when and where to buy?

All of this underlines the importance of buyers being prepared – doing their research and getting everything in order, so when the opportunity strikes, they can take advantage.

Pent-up demand

Case in point? ReMax Canada’s new Move-Up Market Report, which shows that buyers capitalized on the temporary pause in rate hikes in the second quarter of the year, sparking a flurry of activity in the mid- to upper-price ranges.

“By May, the market was moving full speed ahead until the BoC announced its decision to raise the overnight rate in June and again in July, taking the wind out of the proverbial sails of most markets,” says Christopher Alexander, president of ReMax Canada.

ReMax anticipates major markets may remain hesitant through the summer, but once rates start to unwind, demand for housing will likely ramp up yet again.

Translation: Pent-up demand is building over this period, so whether you’re moving up or just getting in, be ready.