September 17, 2024. The Bank of Canada has lowered interest rates yet again—this is the third time in a row. If you’re a homeowner, this is excellent news, and if you’ve been keeping an eye on the market, you might have been expecting it.

Why is This a Great Day for Homeowners?

Interest rates and home prices often act like two sides of a teeter-totter. As interest rates go up, home prices tend to decrease, and as interest rates drop, home prices rise. We saw this dynamic at the end of the COVID-19 pandemic when rates spiked, causing home prices to soften. Now, with rates lowering, we can expect the opposite: home prices are likely to increase.

Upsizing? Now’s the Time

If you already own a home and are thinking of upsizing—perhaps to accommodate a growing family or a better lifestyle—now is a great time to make your move. As interest rates drop, home prices will rise, which means the gap between your current home’s value and the price of the home you want to buy will widen. Acting now allows you to take advantage of the lower rates before prices go up even further.

Downsizing? You Might Want to Wait

If you’re considering downsizing, it might be best to wait. Historically, home prices rise over time, and the longer you hold onto your property, the more equity you’ll likely build. Waiting gives you a better opportunity to sell at a higher price in the future.

Why the Burlington, Hamilton, Niagara area is a Great Place to Own Real Estate

At our real estate agency, we love working in Grimsby on the Lake, and our main office is located here. While we sell real estate throughout the Burlington, Hamilton and Niagara areas, Grimsby is truly a hidden gem. Whether you’re taking a walk by the lake or chatting with a client, it’s a beautiful place to live and work. And with lower interest rates, this area becomes even more attractive for both homebuyers and investors.

What Do These Rate Changes Mean for the Market?

While lower rates are great for existing homeowners and investors, they can make the market more challenging for first-time homebuyers. Rising prices may push some buyers out of the market, so if you’re a first-time buyer, acting sooner rather than later could help you lock in a more affordable home.

Lower rates can also have broader economic impacts, such as influencing inflation and other parts of the economy. While we celebrate the opportunities these rate cuts create for upsizing and investment, we also remain mindful of how they affect different buyers.

Conclusion: Is Now the Time to Act?

For homeowners and investors, this could be the perfect time to make a move. Whether you’re looking to upsize or invest in the market, the window of opportunity is open as interest rates continue to decline and home prices are poised to rise. On the other hand, if you’re planning to downsize, it might be worth holding out a little longer to maximize your returns.

At The Augustine Team, we’re here to help guide you through these market changes. Whether you’re buying, selling, or investing, our team of experts in Burlington, Hamilton, Niagara and across Ontario is ready to help you make the most of the current market conditions. Reach out anytime!