After a challenging stretch in the real estate world, there’s finally some good news worth sharing — and maybe even a reason to feel (cautiously) optimistic about where things are heading. In a recent post from the Real Estate Board of Greater Vancouver, Chief Economist Andrew Lis revisited what’s been happening with home sales since the Bank of Canada started cutting interest rates last year. While things haven’t bounced back overnight, there are some early signs that the market may be rounding the corner.
Here’s What’s Happening:
- Interest rates have dropped significantly since June 2024, with seven cuts to the Bank of Canada’s policy rate (including two large 0.50% cuts).
- The policy rate has gone from 5% to 2.75%, bringing mortgage rates down along with it.
- Home sales, while still below long-term averages, are beginning to flatten out — and possibly turn upward.
- The market trend looks similar to what we saw in late 2024, when a small upswing followed a period of stability.
What It Means for You
If you’re a buyer:
This could be a smart time to get pre-approved and start your search. Interest rates are lower, and if demand picks up again this summer or fall, you’ll be ready.
This could be a smart time to get pre-approved and start your search. Interest rates are lower, and if demand picks up again this summer or fall, you’ll be ready.
If you’re a seller:
The slowest point may be behind us. With rate cuts in play and economic uncertainty easing, buyer confidence is likely to return — especially if your home is priced right and move-in ready.
Why We’re Cautiously Optimistic
Markets don’t recover overnight, and predicting a true “bottom” is more art than science. But when economists and analysts see a flattening trend — followed by slight upward movement — it usually signals that we’re entering a more stable phase. With a federal election behind us and calmer headlines out of the U.S., confidence could slowly build back up.
Bottom line: Keep watching. We may be on the edge of a more active market.
And if you’re considering buying or selling, let’s chat about your timing and options.
This post was inspired by a recent update from Andrew Lis, Chief Economist at the Real Estate Board of Greater Vancouver. You can read the full article here:
“Turning the Corner?” – REBGV Economics Blog
“Turning the Corner?” – REBGV Economics Blog