The Bank of Canada held its benchmark interest rate steady on Wednesday — a decision real estate players and economists say will have major implications for the Canadian housing market.
After all, most market watchers point to the central bank’s aggressive interest rate hikes over the last year as driving the slowdown from the pandemic-era highs seen a year ago to the calmer real estate waters seen in many cities across Canada today.
The decision to hold interest rates steady could mean the bottom of the housing correction is in sight, experts say — but the uncertainty of future rate hikes still looms over prospective buyers and sellers.
Here’s what to know. Even before the Bank of Canada formalized its decision to pause rate changes on Wednesday — it all but telegraphed the move after a quarter-point hike in late January — some housing markets in the country were already showing signs of life following the pronounced downturn in 2022.