Bank of Canada Holds Interest Rates Steady – Impact on Houses for Sale in Mississauga, Ontario


Canada’s housing market experienced some relief following the Bank of Canada’s decision to keep the policy interest rate at five percent in September 2023. This comes after a somewhat damping effect on Real Estate Canada due to two consecutive rate hikes earlier in the year.

This decision was based on recent evidence suggesting a slowdown in excess demand within the country’s economy. Despite this temporary hold, the Bank of Canada (BoC) has not entirely ruled out the possibility of future rate hikes. Industry experts have warned against dismissing the BoC’s cautionary tone, clarifying that this may be the likely scenario in the coming months.

Response from Canadian Realtors  

This announcement relieved many within the housing sector, particularly Ontario Realtors dealing with homes for sale in Brampton and other GTA markets in Ontario.

Toronto realtors noted that the rate hold has provided much-needed relief for many investors, including the Canadian first-time home buyer. Housing rates have been challenging for some people to manage over the last few years. However, it is important to note that while the interest rate decision offers relief, it may not necessarily be a game-changer for more experienced investors.

Recently, Canadian housing markets, including the GTA, have shown signs of stabilization, with price growth moderating slightly. These trends were already apparent, reflecting the impact of the Bank of Canada’s mid-July rate hike, which influenced both sales activity and price growth. Despite the adjustments in the market, the GTA continues to be an area of interest for buyers and sellers as the housing sector navigates the evolving interest rates and tax policies.

What It Means for Houses for Sale in Halton Hills and the GTA

The steady interest rates from BoC and a stabilizing real estate market bode well for houses for sale in Halton Hills and other Ontario cities. The increased number of new listings and moderate price growth give potential buyers more choices while keeping the market balanced.

Though the GTA housing market is expected to remain volatile in the short term, there is substantial demand for housing, driven by record immigration levels in the GTA and Greater Golden Horseshoe.

Thus, the decision of the BoC to hold the policy interest rate at 5% could be seen as a positive sign for potential buyers and investors looking at homes for sale in Brampton and other GTA markets.

GTA Housing in August 2023

The latest TRREB report on the Greater Toronto Area (GTA) housing market shows minimal home sales and price changes between July and August. This stability is attributed to higher borrowing costs and economic uncertainty, driven by the Bank of Canada’s multiple interest rate hikes over the last 18 months.

The MLS average selling price in the GTA was up to $1,082,496 in August 2023. Detached home prices in the GTA increased nearly three percent in August year-over-year to $1,416,366, while semi-detached properties rose to $1,067,980. Townhouse prices increased just shy of four percent to $935,800, but condo apartment prices slid by about one percent to $705,572.

On the sales side, detached home sales decreased by 12 percent compared to the previous year, while semi-detached property sales fell by 14.4 percent. Condo apartment sales increased by 7.6 percent, and townhouse sales increased by 0.6 percent.

Economists predict different scenarios for Toronto’s housing market, with varying levels of recession impact. However, affordability remains challenging for home buyers in the city, so using a mortgage calculator for a cash flow analysis is a good idea, especially if you’re a first-time homebuyer.


The decision by the Bank of Canada to hold its policy interest rate steady at five percent has brought a sigh of relief to the real estate Canada sector. This decision has provided a respite for the Canadian first-time home buyer looking for houses for sale in Mississauga or Brampton and helped stabilize the market.

While future interest rate hikes are not entirely off the table, the current state of the market presents a unique opportunity for potential buyers and investors. For those interested in calculating their home’s worth or real estate investing, staying informed about the changing GTA market conditions is crucial.  As always, it’s advisable to consult with a realtor or a financial advisor before making any significant investment decisions.