Concern Over Further Interest Rate Hikes Linked to Slowdown in Condo Market: Report

Condo and office towers are seen in downtown Vancouver, on April 25, 2023. The Canadian Press/Darryl Dyck

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.