Bank of Canada Holds Interest Rates Steady at 4.5%
As everyone expected, the Bank of Canada held interest rates steady at 4.5% this week.
While inflation has decreased in recent months, Canada's GDP and employment data have been stronger than expected. Recent stress in the global banking system, increases in the price of oil due to OPEC supply cuts, and the full impact of higher borrowing costs have yet to be felt.
Rates will continue to be on hold pending inflation data and with so many factors to consider, it's impossible to predict what will happen next.
What I do know is that confidence is returning to the real estate market with activity picking up, and bidding wars coming back into favour in Toronto and Calgary - I am starting to see prices increases but they are still very moderate right now. The key thing to know is that stability is returning to the market - people now know the sky is not going to fall and I think we have seen the bottom.
If you are interested in investing in pre-construction real estate, get in touch.