Ottawa, ON, July 17, 2017 – According to statistics released today by The Canadian Real Estate Association (CREA), national home sales cooled further in June 2017. Highlights: National home sales dropped 6.7% from May to June. Actual (not seasonally adjusted) activity in June stood 11.4% below last June’s level. The number of newly listed homes… View More >
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Canadian home sales drop sharply in May
Ottawa, ON, June 15, 2017 – According to statistics released today by The Canadian Real Estate Association (CREA), national home sales posted a sizeable decline in May 2017. Highlights: National home sales dropped 6.2% from April to May. Actual (not seasonally adjusted) activity in May stood 1.6% below last May’s level. The number of newly… View More >
CREA Updates Resale Housing Market Forecast
Ottawa, ON, June 15, 2017 – The Canadian Real Estate Association (CREA) has updated its forecast for home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards and Associations in 2017 and 2018. Housing market trends continue to diverge considerably among regions along four general themes: British Columbia, the Greater… View More >
Canadian home sales drop in April
Ottawa, ON, May 15, 2017 – According to statistics released today by The Canadian Real Estate Association (CREA), national home sales declined in April 2017. Highlights: National home sales fell 1.7% from March to April. Actual (not seasonally adjusted) activity in April was down 7.5% from a year earlier. The number of newly listed homes… View More >
Canadian home sales edge higher from February to March
Ottawa, ON, April 18, 2017 – According to statistics released today by The Canadian Real Estate Association (CREA), national home sales were up on a month-over-month basis in March 2017. Highlights: National home sales rose 1.1% from February to March. Actual (not seasonally adjusted) activity in March was up 6.6% from a year earlier. The… View More >
Laura-Leah Shaw, REALTOR® from Vancouver, selected for national award celebrating wide range of philanthropic work
OTTAWA, March 27, 2017 – The Canadian REALTORS Care® Foundation has named Laura-Leah Shaw, of Vancouver, British Columbia, the recipient of its national award – the Canadian REALTORS Care® Award 2017 Proudly Presented by REM. Shaw, of RE/MAX Crest Realty Westside, was selected because of the multitude of charities and activist organizations she actively supports…. View More >
Canadian home sales climb in February
Ottawa, ON, March 15, 2017 – According to statistics released today by The Canadian Real Estate Association (CREA), national home sales were up on a month-over-month basis in February 2017. Highlights: National home sales rose 5.2% from January to February. Actual (not seasonally adjusted) activity in February was down 2.6% from a year earlier. The… View More >
CREA Updates and Extends Resale Housing Market Forecast
Ottawa, ON, March 15, 2017 – The Canadian Real Estate Association (CREA) has updated its forecast for home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards and Associations in 2017 and 2018. Canadian housing market trends continue to display considerable regional divergence. In British Columbia, activity in the Lower… View More >
Canadian home sales edge down from December to January
Ottawa, ON, February 15, 2017 – According to statistics released today by The Canadian Real Estate Association (CREA), national home sales were down slightly in January 2017 on a month-over-month basis. Highlights: National home sales declined 1.3% from December 2016 to January 2017. Actual (not seasonally adjusted) activity in January was up 1.9% from a… View More >
Bank of Canada cuts rate
Thu, 07/16/2015 – 13:30
The Bank of Canada announced on July 15th, 2015 that it was lowering its trend-setting target overnight lending rate from 0.75 per cent to 0.50 per cent. The move follows another cut of the same size in January.
The Bank indicated that it expects the Canadian economy shrank modestly in the first half of the year but has begun to rebound and will gain steam. While its decision to lower interest rates is aimed at supporting business investment and exports, revisions to the Bank’s economic forecast also indicate that lower interest rates will also boost consumer spending and housing activity.
The Bank of Canada also pared back its inflation outlook due to a number of factors which are unlikely to reverse themselves in the near future. That means short-term interest rates are almost certain to remain on hold this year and over 2016.
Recall that when the Bank of Canada previously cut interest rates by a quarter of a percentage point in January, Canada’s largest private banks lowered their lending rates by less than that. The same will likely hold true this time around. Accordingly, the Bank of Canada’s most recent interest rate cut is unlikely to cause consumer borrowing and mortgage lending to catch fire, especially given the currently high level of household debt.
The bottom line has shifted from “lower for longer” to “even lower for even longer”. All other things being equal, this is even more supportive for the housing market.
As of July 15th, 2015, the advertised five-year lending rate stood at 4.64 per cent, unchanged from the previous Bank rate announcement on May 27th, and down 0.15 percentage points from one year ago.
The next interest rate announcement will be on September 9th, 2015 and the next update to the Bank of Canada’s economic forecast will be on October 21st 2015.
(CREA 07/15/2015)
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