An increase of 25 to 50 basis points in the Bank of Canada’s interest rate will not suffice in moderating the expected enthusiasm of the upcoming spring housing market, according to James Laird, co-founder of Ratehub.ca.
A major driver of market dynamism will be the reopened borders, after nearly two years of pandemic-era restrictions.
“With an annual target of more than 400,000 new immigrants to Canada, this influx of additional buyers will increase demand in a housing market that is already short in supply,” he said. “A rate increase won’t be enough to slow down housing prices.”
Economists recently polled by Reuters said that the central bank will raise interest rates by 25 basis points on March 2. However, Laird said that the degree of the rate hike, should it push through, remains uncertain. # SANDI HALPERN # SOLD # LEASED # INTEREST RATES
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