The Bank of Canada made headlines on October 23, 2024, by cutting the policy interest rate by 50 basis points, bringing it to 3.75%. This decisive move reflects the Bank’s intent to stimulate demand and maintain inflation within its 2% target. Here’s what you need to know about how this change impacts the economy—and more importantly, what it means for homebuyers and investors in Calgary.
The Key Drivers Behind the Rate Cut
Governor Tiff Macklem highlighted that the Bank aims to revive economic momentum and keep inflation in check as it cooled to 1.6% in September—lower than expected. Here are some factors leading to the decision:
• Energy Price Decline: Lower energy prices significantly pulled inflation down.
• Weaker GDP Growth: Economic growth in Q3 reached only 1.5%, missing earlier forecasts of 2.8%.
• Unemployment on the Rise: The jobless rate climbed to 6.4%, with more youth workers struggling to find jobs.
The combination of these factors prompted the Bank to make a bold move, and more rate cuts could be on the horizon depending on how the economy evolves in the coming months.
What This Means for Calgary’s Real Estate Market
Lower interest rates directly impact mortgages and home affordability, which creates an excellent opportunity for potential buyers. Here’s how:
• More Affordable Borrowing: Mortgage rates are expected to decline, making it easier for buyers to secure financing.
• Increased Market Activity: Lower rates could trigger more buyer interest, meaning a competitive market could return quickly.
• Investment Opportunities: Savvy investors might take advantage of these conditions by entering the market before prices rise again.
Opportunities for Homebuyers in Calgary
If you’re looking to buy, now might be the perfect time to get ahead of the curve and lock in lower rates. As the economy rebalances, the housing market may heat up, so acting fast could put you in a favorable position. At Gravity Realty Group, we provide the tools, expertise, and support you need to find your dream home or make a strategic investment.
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Looking Ahead: More Rate Cuts?
Governor Macklem indicated that additional cuts may be on the table, as the Bank takes a meeting-by-meeting approach to managing inflation and growth. Whether the economy picks up or continues to soften will determine the pace and size of future adjustments.
For now, the Calgary real estate market is ripe with opportunities. Whether you’re a first-time buyer or an experienced investor, this is a market where timing matters.
Need Help Navigating the Market? We’ve Got You Covered.
At Gravity Realty Group, we’re here to guide you every step of the way. Whether you’re buying your first home, selling a property, or investing in Calgary’s dynamic real estate landscape, we’re committed to helping you make informed and confident decisions.
📞 Michael Newton - (403) 512-9825
📧 michael@michaelnewton.ca
🌐 gravityrealtygroup.com
Grounded in Service,
Michael
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