There are implications if interest rates come down in June! Real Estate prices are a contributing factor to rising inflation. There has been talk of interest rates dropping and I have already seen asking prices increasing. Buyers that have been sitting on the sidelines may make their move, which could add the possibility of increasing prices. Although times have been tougher people are still managing. The Stress Test was a great idea as it required people to qualify at a higher interest rate. This is a key reason why people are managing.
Generally speaking the Real Estate Market is slower in the Summer months , as people are away on holiday, at the cottage, enjoying the great weather, kids away at camp and just not around to look at properties. If the BOC does lower its' Benchmark Rate I expect an uptick in inflation!
