Ketiz Singh

Homeowner Shares Impact of Mortgage Rates on Selling Home

Imagine selling your home on a beautiful acreage just outside Calgary, hoping for eager buyers to come knocking at your door. But instead, your house sits on the market for over 200 days, with potential buyers hesitant to commit due to high mortgage rates. This was the reality for one homeowner who shared his story with me.

Tough Times for Sellers

Last summer was particularly tough for this homeowner as the mortgage rates were high, causing buyers to hold back on making a purchase. To attract buyers, he had to lower the price of his home to match the market demand. It was a stressful waiting game, hoping for the right buyer to come along.

A Glimmer of Hope

With the recent announcement of a rate decrease, the homeowner feels optimistic about the future. He believes that a lower mortgage rate will attract more buyers and eventually lead to a sale of his home. The slight drop in the interest rate may not seem like much to some, but it’s a step in the right direction.

Key Insight: Building trust and confidence in the real estate market often hinges on interest rate changes.

Experts predict that the Bank of Canada’s decision will cause the prime rate to fall to 5.2% at most Canadian lenders, resulting in lower variable mortgage rates. This could potentially stimulate more activity in the housing market.

So, if you’re a prospective buyer or seller, keep an eye on these rate changes as they could greatly impact your decisions. And remember, even small decreases in interest rates can make a big difference in the long run.

Don’t let high mortgage rates discourage you from pursuing your dream home or selling your current property. Stay informed, stay hopeful, and trust that the market will eventually align in your favor. Happy house hunting!