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What Real Estate Agents Need to Know: Bank of Canada Set for Major Rate Cut Amid Slowing Inflation This week, the Bank of Canada (BoC) is expected to announce a significant interest rate cut, following a drop in inflation to 1.6% in September—below the BoC’s 2% target. Experts predict the central bank may reduce its policy rate by half a percentage point, which could impact the real estate market and offer new opportunities for agents. Impact on Real Estate For real estate professionals, lower interest rates typically reduce borrowing costs, potentially increasing buyer activity. However, Carl Gomez, chief economist at CoStar, notes that demand remains weak despite increased home listings, creating more of a buyer's market. While rate cuts may improve affordability, they are unlikely to push house prices up as they did pre-pandemic. Challenges for First-Time Buyers Even with falling interest rates, high property prices and a soft labor market present challenges, particularly for younger buyers. Nathan Janzen, assistant chief economist at RBC, points out that unemployment among younger workers is weighing on demand. This means that while borrowing costs decrease, housing activity might not pick up as expected. Opportunities for Agents Real estate agents can leverage lower rates to encourage buyers who have been waiting for better conditions. Aligning with financial experts like Asif A. Kasim at Integrity Tree Financial can help clients manage cash-flow, savings, and investments during this market shift. As the BoC’s rate cut and updated economic forecasts are released, agents should stay informed and ready to adapt, helping clients navigate a changing landscape with sound advice and strategy. Asif A. Kasim Integrity Tree Financial #BoC #Rates #Realtors #RateCuts #Housing #Buyers #Sellers #Market