Interest Rate Cut Could Affect Edmonton Real Estate in Different Ways

Exciting news for Edmonton real estate! As the Bank of Canada has cut its key interest rate for the fourth time this year, real estate broker-owner shares some friendly advice: "If you’re thinking about jumping into the market, it might be a good idea to find a property now. Prices could rise next year!"

This recent cut, which lowered the rate to 3.75 percent— the biggest drop of the year—could bring a flurry of activity to an already vibrant Edmonton housing market. While this is great for potential buyers, it also means the commercial real estate sector might see a boost as well.

According to the Bank of Canada, this decision aims to support economic growth and keep inflation in check. They’ve hinted at the possibility of more cuts in the future, depending on how the economy performs.

However, it’s worth noting that inventory levels are quite low, with only three months of supply available in Edmonton. This tight market means sellers have an advantage, but the new interest rate could either spark a buying frenzy or lead some buyers to hold off and wait for even better rates.

Overall, while the lower interest rates give buyers more spending power, the limited housing supply might counteract some of those benefits, pushing prices up.

With just one more interest rate announcement scheduled for December 11, 2024, it’s definitely an exciting time to keep an eye on the Edmonton real estate market!