As hoped, the Bank of Canada rates remain unchanged in last Tuesday's interest rate announcement. This will keep the status quo in terms of monetary stimulus. The overnight rate will maintain it's 1% position. The bank rate is correspondingly 1 1/4% and deposit rates are 3/4%.
Although, the Canadian economic recovery is continuing as expected. Some concerns over the past few months, was the concern of over extension of household consumer debt, but even so, the combination of low interest rates along with newly indtroduced lending restrictions will creat a favorable enviroment for continued modest growth.
What does this mean for the real estate market? Continued low rates and favorable economic recovery means that overall the real estate market should continue support a sustainable rate of price growth. This is evident from figures obtained in the GTA Resale Housing Figures released from the Toronto Real Estate Board, that the average trasactional price for homes in the first 14 days of January was $413,565 - up 5% from this time last year.
See more in the TREB news release