Sure, June’s interest rate cuts didn’t exactly ignite the housing market. But patience is a virtue. Some experts anticipated increased home sales after the Bank of Canada slashed rates by a quarter of a percentage point on June 5, making mortgages more affordable. In reality, June home sales didn’t see much of an uptick, and instead saw more people putting their homes up for sale, saturating the market with listings across Canada. But don't count out a strong selling market just yet. Philip Petursson, chief investment strategist at IG Wealth Management, explained to Peak Money that just like it takes time for interest rate hikes to cool the economy, rate cuts also need “upwards of six to 18 months” to stimulate it. We’ve seen this before in the housing market: In March 2020, rates were slashed to 0.25%, but home sales didn’t jump right away. However, monthly sales skyrocketed by 56.9% in May, which drove home prices up.
