Monday, September 30, 2013

This Week in Economc and Real Estate News

Two of Canada's banks issued economic forecasts last week and each contained predictions which impact the housing market.

RBC's Home Re-Sale and Price Forecast calls for re-sale activity to be flat at just over 453,000 units for this year and through 2014. RBC says that average Canadian home prices will appreciate at 2.8% annually by the end of the year but 2014 will see only a 0.5% increase in average prices.

TD Bank's Long Term Economic Forecast looks much further forward - all the way to 2017. It predicts that Canada's economy, lead by exports, will post growth rates of 2.4% in 2014 and 2.6% in 2015.

The Bank of Canada's overnight rate, now at 1%, is forecast to hit 1.5% by the end of 2014, 2% in 2015 and 3.25% by the end of 2017.

So expect the variable rate to finally start rising next year, but in a very controlled slow fashion. 

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