BoC has an interest rate announcement in just a few days and many people have been curious about whether there is another BoC rate hike looming. Most economists are expecting that BoC will hold its interest rates at the upcoming March meeting. If you look at the chart, rate hikes have been gradually decreasing since the summer of 2022.
Governor Tiff Macklem delivered a speech a few days ago in Quebec in which he indicated that excess economic demand appears to have peaked and is beginning to ease. Inflation momentum has slowed with core inflation seen to decline in the months ahead.
Looking for more updates on Toronto’s housing market? Check out these posts
- New rules for Toronto real estate in 2023
- February 2023 market report
Will the BoC rate decision affect Toronto’s housing market?
The real estate market is stable at the moment. Lowered-priced entry-level properties have been getting multiple offers in the past few weeks. Inventory is low, as it has been for months, but demand has increased resulting in a very slight upward pressure on prices in some pockets. I wouldn’t be surprised to see some areas with a slight month-over-month increase in average price when TRREB releases the stats for February next week. In particular in the low-rise segment.
While BoC will likely stop with its rate for the moment, they are highly unlikely to lower its key interest rates until at least the end of 2023, if not later. The expectation is that the upcoming BoC interest rate decisions will not have a huge effect on Toronto’s housing market since any changes they make will likely be minimal.
Questions? Get in touch
Don’t like filling out forms? Feel free to call, text, or email me. My cell phone number is 647-830-5210 and my email is email@example.com