Market update September 2024: Rental market faces 3rd BoC cut

On September 4, the Bank of Canada cut interest rates by a further 25 basis points from 4.5% to 4.25%. This is their third interest rate cut since June, together adding up to 75 basis points. Could it motivate renters to make the leap into homeownership?

• Real estate experts view the drop in borrowing costs as positive, but believe the full impact may take time as potential buyers might wait for even lower mortgage rates.

• Governor Tiff Macklem says if economic conditions improve, further rate cuts might follow later this year. The next update is due on October 23.

• Meanwhile, the Canadian Real Estate Association (CREA) reports an average national home price of $667,317 in July – down 4.1% month over month and 0.2% year over year.

• CREA also reports a 0.7% increase in month-over-month home sales in July.

• Ontario continues to have one of the highest average home prices across the country (second only to British Columbia), at $837,685.

• In July, the average asking rent increased by 0.8% from June, reaching $2,201 and reversing the previous month's 0.8% decline. Nationally, rent has been very stable this year, falling by $1 between May and July according to Rentals.ca.

• The Canada Mortgage and Housing Corporation (CMHC) reports a 16% increase in nationwide housing starts, from 241,643 in June to 279,509 in July.

More rental market headlines

Race is on to find student housing as fall semester approaches – CTV News

Toronto calls on residents to weigh in on a new renovictions bylaw – CBC

Cottage rental scammers could be posing as your business – PayProp blog