Move Smartly: The Podcast
Cheap Mortgages Aren't Coming Back: What That Means for House and Condo Prices
For more than a decade, Canadians borrowed on the assumption that interest rates would always come back down. BMO senior economist Robert Kavcic says that assumption no longer holds. In this episode, Robert explains why BMO believes the era of low real interest rates is officially over. He sees it as a long-term shift, not a temporary spike that the next rate-cutting cycle will undo. We discuss what that means for housing, especially in the GTA. Robert sees the market splitting in two. Larger ground-oriented homes are firming, while the small condo market remains saturated and investors have largely walked away. He says he can see house prices levelling off while condo prices continue to trend down. We close with the AI-driven stock market boom, which Robert places in the "seventh inning stretch" of a classic asset bubble, and what happens when it ends. Robert Kavcic is Director and Senior Economist at BMO Capital Markets. His research is available at economics.bmo.com.
