Overview
A recent interest rate cut by the Bank of Canada has not significantly influenced most Canadians’ decisions regarding the housing market. Despite the cut, many Canadians still find homeownership unaffordable.
Homeownership Challenges
Calgary resident Kayla Dos dreams of owning a home but remains skeptical that the interest rate cut will make a significant difference. She highlights the financial burdens of saving for various expenses, including school, emergencies, and daily bills.
Polling Results
A poll conducted by Ipsos for Global News reveals that 82% of Canadians still find buying a home unaffordable, although this is a slight improvement from previous data. Additionally, 62% have given up on the idea of ever owning a home, indicating a 10-point decline, suggesting some hope due to the rate cut. Among homeowners, 33% are concerned about their ability to keep their homes due to high mortgage rates.
Expert Insights
Shan Simpson, Ipsos VP, notes that many Canadians are nervous about future mortgage renewals at potentially higher rates. Those who bought homes in 2020 or early 2021 at sub-2% interest rates are particularly anxious.
Future Outlook
There is optimism about potential future rate cuts, with another possible reduction in July. Experts predict a significant impact on the housing market this fall if additional rate decreases occur over the summer.
Conclusion
While the recent quarter-point interest rate cut has slightly changed attitudes towards homeownership, significant behavioral changes in the housing market are anticipated only after further cuts. Canadians continue to grapple with the affordability of homeownership amidst ongoing financial uncertainties.
