The prospect of further interest rate hikes is casting doubts among Canadian homebuyers, according to a recent Re/Max report. This development signals the conclusion of a short-lived resurgence in condominium activity across major markets nationwide.
The report follows a Bank of Canada warning on Sept. 6. that it is “prepared to further increase the policy rate if necessary,” expressing concern over persistent inflation. The central bank has maintained its main policy interest rate at 5 percent since then.
“Affordability remains a top concern in most markets across the country. Despite some softening in overall values, carrying costs are proving prohibitive for many buyers at today’s interest rates,” Re/Max said in the report.