(This is the second of a two-part story on Canadians’ expectations, derived from a Dye & Durham survey, in advance of anticipated Bank of Canada interest-rate cuts. In Part I, Connect reported that most Canadians expect the BoC to introduce highly anticipated reductions in June.)

Residential property enters are closely monitoring the Bank of Canada’s upcoming interest-rate policy decision.

The BoC will provide an update on its key overnight lending rate on Wednesday, announcing whether it will continue to hold the rate at 5% or begin to introduce highly anticipated rate cuts.

Half of current renters believe that impending Bank of Canada interest-rate cuts will greatly improve their chances of owning a home, says the Dye & Durham report. Of that group, seven in 10 are 18-to-34-year-olds.

Dye & Durham’s findings could have widespread implications for Canadian condominium demand, which is expected to receive a boost, although perhaps not immediately, from the highly anticipated rates cuts. The renters’ sentiment also provides insights for Canadian condominium project project backers and developers who want to bring capital off the sidelines.

The BoC interest-rate policy is expected to diverge from the U.S. Federal Reserve position for a rare time as the American central bank leans towards a hike to control rising inflation.

Canadian inflation has been on a downward trend, moving towards the BoC’s 2% target.

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.

Dye & Durham’s COO Martha Vallance has advised that, although cuts are expected, consumers should not expect interest rates to return to their previous levels.

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.