A Prince George realtor believes the Bank of Canada’s latest rate cut will likely allow more first-time home buyers to enter the market.
This morning (Wednesday), the Central Bank cut its key rate for a fourth time, reducing it by 50 basis points to 3.75%. The cut was widely expected by economists, as inflation has slowed to 1.6 per cent, below the bank’s target of two per cent.
Bob Quinlan with RE/MAX Core Realty told MyPGNow.com having a little extra money to play with will be key for potential buyers.
“A buyer yesterday who was only able to afford a certain size mortgage, now on the same payment will be able to afford some more money. It will affect the buyer’s ability to be able to purchase a property. They will be able to look at more properties or they will be able to look at better properties.”
“It’s going to bring more first-time buyers into the market and more sellers are probably going to come on to the market as many sellers will want to believe and sometimes in certain areas it is factual the lower interest rates will create prices some sellers need to get in order to sell and move on.”
B-O-C Governor Tiff Macklem stated if the economy continues to evolve broadly in line with the central bank’s expectations, more interest rate cuts can be expected.
Something going on in the Prince George area you think people should know about?
Send us a news tip by emailing [email protected].
