The Bank of Canada moves forward with another rate increase

On September 6 – The Bank of Canada has raised its key interest rate by one-quarter point to 1% after having raised it to 0.75% back in July. To view the announcement – click here.

  • The Bank of Canada says the decisions were based on much higher than expected growth in Q2 GDP.
  • GDP expanded by 1.1% in the second quarter, for an annualized growth rate of 4.5%.  It was the fastest increase in growth in 15 years.
  • The growth is being fueled by consumer spending, strong job growth and low interest rates. Business investment and exports also made significant contributions.
  • In the month of June the economy was led by construction which, in turn, was led by housing – particularly condos.
  • The bank left the door wide open for another hike in 2017.  But it also said it will be watching to see how heavily indebted Canadians adjust to higher rates.

The next dates for rate announcements are October 25th and December 6th.

August 2017 market update

“First-time home buyers have led a surge this summer in demand in our condominium and townhome markets,” Jill Oudil, REBGV president said. “Homes priced between $350,000 and $750,000 have been subject to intense competition and multiple offers across the region.”

  • August 2017 home sales increased 22% compared to same month last year. It was 20% higher than the 10-year August sales average.
  • Sales-to-active listings ratio for August 2017 was 35% for all property types or:

*16% for single family houses (balanced market)
*45% for townhouses (seller’s market)
*76% for condos (seller’s market)

Click here to view our August 2017 market update video featuring Board President Jill.