The Bank of Canada held its trend-setting Bank Rate at 1.25 per cent on July 19th, 2011. This marks the seventh consecutive policy decision in which interest rates have been kept on hold.
The Bank now expects the economy will grow 2.8 per cent this year. This was revised slightly from the previous forecast of 2.9 per cent. The Bank kept its 2012 and 2013 growth forecasts unchanged at 2.6per cent and 2.1 per cent respectively.
As of July 19th, 2011, the advertised five-year lending rate stood at 5.54 per cent. The Bank will make its next scheduled rate announcement on September 7, 2011, and many experts had already been forecasting a rate hike at that time. (CREA 07/19/2011)
OTTAWA – July 15, 2011
Highlights:
- Sales activity climbed from May to June, with a big year-over-year gain reflecting falling demand in June 2010.
- Year-to-date sales remain in line with the ten-year average.
- The number of newly listed homes also rose from May to June.
- National housing market remains firmly entrenched in balanced territory.
- National average price still being skewed upward by the value of sales in expensive Vancouver neighbourhoods, with price gains in other markets providing additional loft.
Seasonally adjusted national home sales activity rose 2.6 per cent in June 2011 compared to the previous month. Two-thirds of local markets posted month-over-month gains in June.
Activity remained stable in Toronto while declining slightly in Vancouver and the Fraser Valley. Major markets that saw gains compared to May included Calgary, Montreal, Ottawa, London, Hamilton, and Victoria.
“Canadian housing demand remains resilient, thanks to low interest rates, job growth, and home buyer confidence in the economy,” said Gary Morse, CREA’s President. “That said, local housing market trends often differ from national trends, so buyers and sellers should consult their local REALTOR® to understand how the housing market is shaping up where they live.”
“The Canadian housing sector remains on a solid footing,” said Gregory Klump, CREA’s Chief Economist. “The rise in monthly home sales activity at the end of the second quarter, upbeat business sentiment and hiring intentions, and signs that the Bank of Canada is in no rush to raise interest rates bode well for home sales activity and prices going into the second half of 2011.”
The national average price for homes sold in June 2011 was $372,700, up 8.7 per cent from the same month last year. The national average price is becoming less affected by the overall number of sales in some expensive Vancouver neighbourhoods, but is still being pitched higher by the value of those sales.
So what does this mean for the average person? Quite simply our market is proceeding slow and steady, for home buyers this means that they are buying in a buyer’s market in our area but this might turn into a balanced market once the financial markets stabilize. There is always a silver lining, especially in markets outside of Vancouver, if the banks decide to keep the current lending rates it means that our local economies will still have growth. Our housing market will remain the same for a while, offering great opportunities for first-time home owners to get into the market, after all real estate is I think always the best investment. Kamloops average home sales are $306,000.00 for 2011 so far.
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