Bank of Canada’s (BoC) latest interest rate hike and the Impact on the Real Estate Market This Spring/Summer
Wednesday Jun 07th, 2023
Bank of Canada’s (BoC) latest interest rate hike and the Impact on the Real Estate Market This Spring/Summer
The Bank of Canada (BoC) has recently implemented its second rate increase of the year, taking the overnight rate up by 0.25% to a total of 4.75%. This move has been largely influenced by the persistently high inflation rate. This announcement is particularly noteworthy for those with variable-rate mortgages and individuals looking to secure a mortgage, as it directly affects them.
BoC had previously committed to maintaining rates as long as inflation showed a favorable trend. However, the recent economic developments didn't align with this projection. Surprisingly, both consumer spending and inflation in April, along with the Q1 economic growth, outpaced expectations.
This spring has witnessed an influx of potential buyers who were previously holding off. This surge in demand, however, has not been met with an equal increase in inventory across many major markets. For instance, the Toronto Regional Real Estate Board reported a total of 15,194 new home listings in the previous month, which, while being 3,830 more than April 2023, didn't suffice to uphold the months of supply. As a result, the region's months of supply have decreased to 2.2 months, down from 2.3 in both March and April 2023.
Check out a more detailed analysis of the Greater Toronto Area Real Estate Market in May 2023 here. Additionally, you can also view the full TRREB Market Watch Report here.
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Are you considering purchasing your dream home or looking to invest in a property? Or perhaps you're thinking of selling your current one? Allow me to guide you smoothly through the entire process, from start to finish, ensuring a hassle-free experience. I invite you to reach out for a complimentary, no-obligation consultation. Your journey to success begins with a single conversation!
Sami Chowdhury
Broker
RE/MAX Realtron Realty Inc., Brokerage
885 Progress Avenue, Suite 209, Toronto, Ontario, M1H 3G3
Direct: (647) 725-0606
Office: (416) 289-3333
Fax: (416) 289-4535
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