Bank of Canada rate hike

by Michael Englund

Today the Bank of Canada (BoC) made its decision to only raise the overnight rate by 0.50%, while the majority of economists were expecting 0.75%. 🏠

The major news here is the Bank's lowered outlook on Canadian inflation over the next two years. The BoC now projects the Consumer Price Index to come down to 4.1% (from 6.9% currently) by the end of 2023 and eventually right back down to 2.2% by 2024 where the BoC wants to be.🙏

What does this mean for real estate? Quite a lot. This is a major change in attitude from the BoC and signals the end of our current cycle of rate hikes is near. In a stable rate environment, buyers and sellers get acclimated to the current rates and our market stabilizes. What is a stable market? In my opinion it is a market that is quite balanced in terms of the number of sellers to the number of buyers and that there is a level of confidence that there are less variable factors involved in the decision making process. This type of market provides a more predictable environment to make one of the largest transactions in our lives.

Clearly my tone is one of optimism, and why not? With all the crazy stuff going on in the world today, optimism and positivity will win (provided it's backed up by logic and ability). ✊✅

Now is a great time to talk about real estate, even you are several months away from making a decision, or know someone who is. You can never be too prepared. Call me any time at 905-399-4269.