The first key interest rate cut in more than four years by the Bank of Canada this week is step in the right direction.
That is according to Teresa Ondrejicka, president of the Huron-Perth Association of Realtors.
Ondreijicka believes it’s welcome news and it could spur more people into buying homes rather than looking.
But the quarter of a percentage point cut is by no means a silver bullet, she says.
The cut is good news for borrowers and owners, effectively lowering interest rates, but not by a big amount.
More cuts could be on the way, however.
The Bank of Canada upped key interest rates a number of times to stifle inflation.
Ondrejicka said no one has a crystal ball, but if interest rates continue to drop realtors will see more homes getting purchased.
In the Huron-Perth area, the real estate market still has a shortage of homes and an abundance of buyers.
Ondrejicka wouldn’t count on home prices dropping off just yet.
