(This is the first of a two-part story on Canadians’ expectations, derived from a Dye & Durham survey, in advance of anticipated Bank of Canada interest-rate cuts.)

One in three Canadians expect the Bank of Canada to introduce highly anticipated interest-rate cuts in June, Dye and Durham reported.

Meanwhile, two-thirds say lower interest rates will have a positive impact on their financial wellbeing. Also, two in five Canadian mortgage holders expect to refinance their home mortgage after interest rates begin to decline. And, half of current renters, including most 18-to-34-year-olds. believe lower rates will make it more likely for them to buy a home in the future.

The findings offer insights on future commercial real estate demand across several asset classes. Dye & Durham gathered the data through a survey of more than 1,500 Canadians on trends in the economy, technology and real estate market

The survey was conducted via the online Angus Reid Forum.

“It’s clear that higher rates have done their job, cooling consumer spending significantly and helping to bring inflation down to much more manageable levels,” said Martha Vallance, Toronto-based Dye & Durham’s chief operating officer, in a news release.

“Consumers have said they’re ready to start spending again and are just waiting for the Bank of Canada to make its move, though few should expect rates to return to where they were before. Industries like real estate, automotive sales, construction and more – along with those industries that play critical roles in supporting them – should take note and prepare for a fast-moving market once meaningful cuts are made.”

Most Canadians (81%) say they believe lower interest rates will make it more affordable for them to purchase, or put money towards, such real estate expenses as mortgage costs, the purchase of a new home or property (70%) or owned home or property (66%) and home renovations (65%).

The most common planned purchases are a new car (15%), a new home or primary residence (14% overall, 24% for renters) or a significant home renovation project (12%). 

The BoC will make its next interest-rate policy announcement on June 5. Many economists and analysts believe that the central bank will hold off on introducing cuts until at least July.

Get Ready for Canada Kick-off

Connect CRE will hold its inaugural Canada Kick-off Event in Toronto on June 11. This will be Connect’s first commercial real estate industry conference in Canada. Panelists will include Syl Apps, managing director and co-country head for Hines; Lindsay Brand, chief investment officer at Concert Properties; Mark Kenney, CEO of Canadian Apartment Properties REIT; and, Marie-France Benoit, Avison Young’s director of Canadian market intelligence. Come and gain insights from industry leaders on such matters as buyer sentiment amid a lower interest-rate environment, cross-border commercial real estate transaction trends, and investors’ outlook for 2024 and beyond. Register today.