Canada's housing market is facing a significant downturn as economic recession concerns weigh on potential homebuyers. A recent BMO survey reveals that 73% of would - be purchasers are adopting a wait - and - see attitude due to fears of an economic slump, a 13 - percentage - point increase compared to March.
Despite the central bank having cut interest rates seven times in a row to 2.75%, 38% of homebuyers are still waiting for the interest rate to drop below 3% before entering the market. Currently, the lowest five - year fixed - rate mortgage stands at 3.74%. However, 56% of the respondents believe that the right time to buy a house has been missed, and half of them think that it is more difficult to purchase a property than last year. BMO economist Kavcic points out that the trade shock has inflicted lasting psychological trauma, and the housing market's recovery will require a long - term process. High housing costs, which 72% of the people are worried about, and interest rate pressures continue to dampen market vitality, dimming the prospects of a soft economic landing.
