by Sleman Usmanee The Bank of Canada’s recent decision to lower interest rates to 3.25% is creating exciting opportunities in Calgary’s real estate market. Lower rates are already drawing attention from buyers and investors, making now a pivotal time to understand the changes and act. Here’s how this rate drop is reshaping the local housing market and why it’s the right moment to buy.
More Buyers Entering the Market
Lower interest rates mean lower borrowing costs, making mortgages more affordable. This change enables renters and first-time buyers to enter the market, while current homeowners are encouraged to upgrade to larger or newer properties.
This surge in demand increases competition, especially in Calgary’s already active real estate market. Recent data from the Calgary Real Estate Board (CREB) shows steady year-over-year sales growth and lower interest rates are expected to accelerate this trend as more buyers step in.
Upward Pressure on Home Prices
Increased demand usually leads to rising home prices. Calgary’s resilient real estate market, supported by a growing population and economic diversification, is no exception. With more buyers competing for available homes, prices are likely to climb.
For example, a $700,000 home could see significant appreciation over the next year. Acting now helps buyers secure properties before anticipated price increases. Historically, Calgary’s market has rewarded those who purchase early in high-demand periods.
Why This is a Good Time to Buy
- Lower Mortgage Payments: The 3.25% rate reduces monthly payments, helping buyers qualify for larger loans or save more.
- Equity Growth Potential: Rising prices mean early buyers can see significant equity gains in a short time.
- Potential Supply Shortages: Calgary’s balanced market could tighten as demand grows. Acting now ensures you find a property before inventory becomes limited.
- Uncertain Future Rates: Interest rates can change, and locking in today’s low rate protects buyers from future increases.
Conclusion: Act Now to Stay Ahead
The recent interest rate drop to 3.25% is drawing more buyers into Calgary’s housing market, increasing demand and pushing prices upward. If you’re thinking about buying, now is the perfect time to act before the competition heats up further.
Working with an experienced Calgary realtor can help you navigate this opportunity and secure the best deal. Contact me today to discuss your home-buying goals and take the first step toward owning your dream home before prices rise.
Reference: https://www.bankofcanada.ca/2024/12/fad-press-release-2024-12-11/