Summerfield has 9 homes on the market, with one sale this month. However, today, two listed homes will be removed from the market. One requires minor updates, while the other experienced the collapse of two offers due to financing issues. Notably, 156 172A STREET has accepted an offer.
The current real estate market is sensitively impacted by the effects of interest rates, making mortgage approval more challenging. We are in a buyer's market but anticipate improvement in the new year. The next Bank of Canada benchmark rate announcement is scheduled for December 6, 2023. The 5-year Government of Canada Bond yield, influencing fixed mortgage rates (currently at 3.88% this morning), has significantly decreased by -0.54% from its recent high in early October of 4.42%. This shift is attributed to lower-than-anticipated US inflation last month and favourable domestic and international economic data.
Due to lower Bond Yields, non-big 6 bank lenders have lowered some advertised fixed rates in the past week. On average, among non-big 6 banks, fixed rates have fallen by 0.18% in the past week, though variations exist based on term length. Conversely, major banks have not openly advertised lower rates but may offer better rates upon request.
Homeowners and renters may soon experience relief from surging housing costs, as economists predict the Bank of Canada will initiate interest rate cuts around mid-2024 to prevent a severe recession. In a recent shift, Bank of Canada governor Tiff Macklem indicated a departure from his previous stance, stating that the central bank would lower the overnight lending rate before inflation reaches 2 percent, emphasizing the importance of being on a clear path toward that target. In September, inflation decreased to 3.8 percent from 4 percent in August.
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