Bank of Canada rate reduction could provide boost for GTA real estate market


“Homebuyers on the Edge: Will the Bank of Canada Cut Rates?

As the housing market in the Greater Toronto Area (GTA) continues to fluctuate, many potential buyers are eagerly awaiting a potential rate cut by the Bank of Canada. According to Jason Mercer, the chief market analyst at the Toronto Regional Real Estate Board (TRREB), GTA housing sales were down by 5% in April compared to the previous year, while new listings saw a significant increase of 47%. With inflation dropping to 2.7% in April, all eyes are on the Bank of Canada’s upcoming decision on June 5.

The Anticipation of Rate Cuts

Mercer noted that there is a growing number of buyers who are currently waiting on the sidelines, hoping to see a decrease in borrowing costs. These buyers are looking for lower mortgage rates to improve affordability and make homeownership more attainable. The market is poised for an influx of buyers once the Bank of Canada takes action on interest rates.

Predictions and Speculations

TRREB has forecasted a potential increase in sales in the latter half of 2024. However, James Orlando, a senior economist at TD Economics, believes that a rate cut announcement is more likely to happen in July rather than June. Orlando suggests that the Bank of Canada may use the June meeting to pave the way for a rate cut in July, to avoid unexpected financial market volatility.

Impact on Real Estate Market

Orlando predicts that the first rate cut could bring the central bank’s key rate down from 5% to 4.75%. This reduction, combined with controlled inflation, could provide a boost to the real estate market in the GTA. Orlando believes that a series of interest rate cuts in the latter part of 2024 and into 2025 could serve as a tailwind for the real estate market, improving affordability and stimulating sales and prices.


As the Toronto real estate market braces for potential rate cuts by the Bank of Canada, the future remains uncertain. While some buyers are hopeful for increased affordability through lower mortgage rates, others are cautious about the impact of interest rate cuts on the overall market dynamics. The decisions made by the central bank in the coming months will undoubtedly shape the landscape of the GTA’s housing market. Stay tuned for updates on this evolving situation.”



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