Bank of Canada CUTS Interest Rate to 4.25%, Opens Door to Steeper Cuts

Bank of Canada CUTS Interest Rate to 4.25%, Opens Door to Steeper Cuts

#TorontoRealEstate #TorontoCondoMarket #TorontoRealEstateMarket

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[Sanchyfab]

Lower interest rates generally stimulate the economy by making borrowing cheaper for businesses and consumers.

[Lifeisapartydresslikeit]

I think 50 basis points will come next month!! If not, 25 basis points every announcement until March 2025

[quixomega]

Oh boy, the economy must be in really rough shape.

[Joe-mzdc]

Yay! Rate cuts! The economy is dying! We're going into a massive recession! Yay! 🤡

[jampapalden]

Bank of Canada interest 4.25% But why still over 6.01% other Banks?

[Lifeisapartydresslikeit]

And people were saying rates were never going to come down 🤣🤣 let me get my popcorn 🍿

[pd]

This is so stupid, how many stupid real estate agents are there? It will continue to trade sideways at the same mortgage monthly adjusted for rate reductions and that’s how you calculate the price increases

[kevinn]

The BOC cut because we have 2 economies. The real estate market and the rest of the economy. We've already had 5 quarters of contraction and the real estate sector is just sitting there dead. And it's dead because at 13 times wages/income, home prices are completely out in left field.

This is following the 1990s exactly and in the 90s int rates dropped and home prices kept dropping with the rate cuts. Why? Because GDI for people is shrinking. People have hit a wall.  Back in the 90s this cycle took 7-8 years and I don't see this situation being any different.

Going back to what you call normal would be a disaster at this stage. It would result in 10 years of stagflation as people ignore the signs and keep jacking up their leveraging to mortgages. This is the exact reason why Canada is rock bottom in GDP growth. Also add in if developers are shelving projects, that means more layoffs are coming. People on the unemployment lines don't buy houses.

I'm expecting a much bigger drop in prices. Volume is low which means nobody is buying at these price levels. The only way to increase volume is to drop prices.

[aiqueenla]

You will expect usd increases and cad decreases, what is the impact? Price increases cost increases, money comes in and then out

[vert]

any recession will not impact all levels of society equally, at least from a job loss perspective. there is still a lot of multigenerational wealth out there just waiting for rates to come closer to inflation. The poor will lose their jobs, and wont qualify. However, the rich will come out of this guns blazing. There's still enough of these buyers to reignite a smaller version of what we saw previously. At some point investors will see this as a big opportunity (population growth & rental market). I've been saying March 2025 is when this will pop off again.

[stevet]

Real estate is just about to collapse at least 50% to 80% in about a week

[rondennis]

You are is the ski blue in your little world !

[dirtlump]

NO... the BoC did NOT open the door to "steeper" rate cuts.... only further rate lowering can be expected as appropriate ?
Just WTF are you on about

[fatimaalzahra]

Those who will buy a detached home have to sell their condo first. Only 2%-3% of condos are selling. Therefore detached home prices is linked with high degree to condo market. They are not separate. Even if investors want to buy detached home, they have to sell their condo first. Condo prices will go down considerably before detached home markets picks up. You can't build fourplex anywhere in Toronto and good luck having this approved so real estate investors are not jumping into this business adventure.

[pd]

How can you say 3-4%? You literally mark no sense, that would mean prices have decreased because of lowering rates. This is a false video.

[kist]

Rate cuts rate cuts, buy RE buy RE, lmao we are going to see the mother of capitulation. Seat belts on!

[SeamusMcFitz-jzif]

If you can't afford a home then you don't deserve one.

[AnitaSridhar]

We don’t want it to crazy . It should be a balanced market.

[niftyoptionslivetradingand]

Zhennish accent, couldn't get the numbers at all 😂😂

[AnitaSridhar]

This is a great time to buy and will be until next summer