This week’s Bank of Canada rate drop to 2.75%—the seventh in a row and the lowest since September 2022—comes as a response to U.S. tariff pressures and could breathe new life into the housing market, experts say. The bank acknowledged that trade tensions might slow growth and fuel inflation, yet the cut aims to spur economic activity.
Real estate firm Coldwell Banker predicts cheaper borrowing costs will boost buyer access and ignite competition, giving sellers a chance to capitalize on heightened interest. “It’s an opening for the market to heat up,” they said. Phil Soper of Royal LePage echoes this, suggesting the move aids first-time buyers and renewers alike. “Trade woes won’t derail housing’s strength,” he insisted, hinting at more cuts ahead to steady the economy.
Still, not everyone’s convinced. A Zown survey shows nearly half of non-homeowners (49%) aren’t ready to jump in, even with lower rates. In the GTA, February painted a mixed picture: MLS sales fell 27.4% to 4,037, and the average price dipped 2.2% to $1,084,547 year-over-year, per the Toronto Regional Real Estate Board. But Zoocasa notes a silver lining—listings moved faster (28 days vs. 37 in January), signaling resilience for attractive homes.
Looking to spring, Zoocasa foresees economic unease tempering buyer rivalry, which could mean more choice and affordability—though prime properties in top areas should hold their appeal.