We should probably expect the housing market to slow down before it picks up again, likely this summer.
That is the finding of a recent survey of prospective home buyers conducted for BMO Bank of Montreal. A remarkable three-quarters of the people it surveyed are sitting on their hands, deferring plans to buy a house until interest rates comes down.
Based on the Bank of Canada’s latest decision to leave interest rates where they are for now pushes back the first cut in a couple years until at least June or July.
There appears to be a growing consensus among economic observers that it will be sooner rather than later in this country with many speculating June’s Central Bank decision may actually bring a reduction in interest rates. This is in contrast to the situation in the U.S. where the economy – unlike ours which sputtering – is strong so interest rates there may have to remain higher.
But even with the possibility of a reduction, half of those surveyed concluded the possibility of ever owning a home is simply out of reach.
