The latest interest rate cut by the Bank of Canada (BoC) on Wednesday is being called great news for both buyers and sellers in Windsor-Essex.
The decision marked the fifth consecutive reduction since June and brought the central bank's key rate down to 3.25 per cent, but signalled a slower pace of rate cuts moving forward.
President of the Windsor-Essex County Association of Realtors (WECAR), Maggie Chen, says this will help buyers and sellers.
"The rate cut is expected to stimulate the activity in the Windsor-Essex County real estate market, which means it's going to lead to increased demand, potential price growth and higher transaction volumes."
She says there is no doubt in her mind that the rate cut will lead to the banks to cut mortgage rates as well.
"With the lower mortgage rates, it means making borrowing more affordable. So this will encourage more first-time home buyers, and investors, to enter the market."
Chen still issued a caution stating home buyers should be prepared for future interest rate fluctuations.
"You have to make sure that the long-term affordability is there. I really want to make sure that the buyer's aware of that. Number two is that the lenders may still maintain the strict mortgage approval standards, so make sure that the borrowers can handle rate increases down the line."
Economists are now widely anticipating the BoC will scale back its cuts next year to quarter-percentage point reductions.
-With files from AM800's The Shift with guest host Kyle Horner and The Canadian Press