On September 9, 2015 the Bank of Canada (BoC) announced they are maintaining the overnight rate at 0.5 per cent. In a press release the BoC noted that inflation has stayed firm near the Bank's 2 per cent target as a result of a strong retail market and demand from the USA. Stable oil prices, though low, are helping, but the volatility in global financial markets is being closely monitored.
Employment in BC is up 0.7 per cent compared to 2014 jumping to 1.3 per cent in just the past three months.
“While some may quibble over whether the economy was in recession, technical or otherwise, economic growth was undeniably weak for the first five months of the year,” noted BC’s Real Estate Association (BCREA) recently, taking a broad look at Canada’s economic performance. They then reminded us that “… the downturn was quite modest compared to the severe recessions of the early 1990s or the 2008 financial crisis.”
Whether or not we have been experiencing a recession, it is not reflective of consumer confidence in real estate. For only the third time in BC, Multiple Listing Service® (MLS®) residential sales are expected to reach 100,000 units in 2015, creating a seller’s market and impacting prices. BCREA notes housing demand has not been this robust since 2007 when 102,800 home sales were recorded.
Bringing that home to the Kamloops region the number of homes sold is up almost 15 per cent over last year, while the number of active listings is down almost 8 percent.