April 13, 2022 - The Bank of Canada today increased its target for the overnight rate to 1%, with the Bank Rate at 1¼% and the deposit rate at 1%. The Bank is also ending reinvestment and will begin quantitative tightening (QT), effective April 25. Maturing Government of Canada bonds on the Bank’s balance sheet will no longer be replaced and, as a result, the size of the balance sheet will decline over time.

In Canada, growth is strong and the economy is moving into excess demand. Labour markets are tight, and wage growth is back to its pre-pandemic pace and rising. Businesses increasingly report they are having difficulty meeting demand, and are able to pass on higher input costs by increasing prices. While the COVID-19 virus continues to mutate and circulate, high rates of vaccination have reduced its health and economic impacts. Growth looks to have been stronger in the first quarter than projected in January and is likely to pick up in the second quarter. Consumer spending is strengthening with the lifting of pandemic containment measures. Exports and business investment will continue to recover, supported by strong foreign demand and high commodity prices. Housing market activity, which has been exceptionally high, is expected to moderate.

The Bank forecasts that Canada’s economy will grow by 4¼% this year before slowing to 3¼% in 2023 and 2¼% in 2024. Robust business investment, labour productivity growth and higher immigration will add to the economy’s productive capacity, while higher interest rates should moderate growth in domestic demand.

The next scheduled date for announcing the overnight rate target is June 1, 2022. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on July 13, 2022.

Credit: Bank of Canada

Read full post

Market Snapshot - April 2022

Seeing more for sale/sold signs last month? March's numbers are in and evidence of an increase of inventory has helped make a level playing field for Buyers. When a surge of new listings hit the market, demand is satisfied and, in most cases, prices are affected. In March we've seen some properties on the market longer than expected with Buyers having more selection to choose from. An increase in listings paired with the BoC's rise in the overnight rate, has shown a bit of short-term easing in market conditions.

Average prices in Toronto & Hamilton, compared to February, have leveled with a slight decline of -0.38% / -0.92% respectively. Further decrease's have been posted in Mississauga -3.56% / Milton -3.34% / Brampton -2.6% / Burlington at -11% and Muskoka Region -8.7%. Oakville posted an increase of +4.84%.

“Competition between home buyers in the GTA remains very strong in most neighbourhoods and market segments. However, we did experience more balance in the first quarter of 2022 compared to last year. If this trend continues, it is possible that the pace of price growth could moderate as we move through the year,” said TRREB Chief Market Analyst Jason Mercer.

I'll keep you posted on how the market fairs in the coming months. In the meantime, CLICK HERE for the full report on these and other regions. If you're looking for in-depth stats for your neighbourhood, reach out and I'll be happy to update you.

Need a professional to help achieve your real estate goals? Look no further. Reach out anytime. I'm here to help. 416-948-2883 (direct cell).

Read full post

The Government of Ontario has announced amendments to the Non-Resident Speculation Tax (NRST).

As of March 30, 2022, the NRST rate will be increased from 15% to 20% and will be expanded to all regions of the province. The NRST applies to the transfer of “designed land”, which is considered land that contains at least one and no more than six single family residences.

The NRST will continue to apply to individuals who are not Canadian citizens or permanent residents of Canada or by foreign corporations or taxable trustees.

Note: The NRST applies if any one of the transferees is a foreign entity or taxable trustee, regardless of their share of ownership. For example, if a transfer of residential property is made to four transferees, only one of which is a foreign entity, the NRST would apply to 100 per cent of the value of the property.

Certain individuals will continue to be exempt from the NRST, including foreign nationals in the Ontario Immigrant Nominee Program, protected persons (refugees), spouses of Canadian citizens, or permanent residents of Canada.

Increasing the tax rate to 20% and expanding the tax to apply provincewide is an attempt by the Government of Ontario to deter non-resident investors from speculating in the housing market in hopes that home ownership will become more attainable for Ontario residents.
Read full post
Categories:   Ancaster, Hamilton Real Estate | Appleby, Burlington Real Estate | Bay Street Corridor, Toronto C01 Real Estate | Bilbert, Hamilton Real Estate | Brampton Core North Peel, Brampton Real Estate | Brant, Burlington Real Estate | Caledon Real Estate | Carlisle, Hamilton Real Estate | Central Erin Mills, Mississauga Real Estate | Churchill Meadows, Mississauga Real Estate | City Centre, Mississauga Real Estate | Clarke, Milton Real Estate | Danforth Village-East York, Toronto E03 Real Estate | Eastlake, Oakville Real Estate | Erindale, Mississauga Real Estate | Fessenden, Hamilton Real Estate | Ford, Milton Real Estate | Grimsby Real Estate | Harrison, Milton Real Estate | Headon, Burlington Real Estate | Humberlea-Pelmo Park W4, Toronto W04 Real Estate | Hurontario, Mississauga Real Estate | Iroquois Ridge North, Oakville Real Estate | Islington-City Centre West, Toronto W08 Real Estate | Jerome, Hamilton Real Estate | Junction Area, Toronto W02 Real Estate | Long Branch, Toronto W06 Real Estate | Lorne Park, Mississauga Real Estate | Markland Wood, Toronto W08 Real Estate | Meadowvale, Mississauga Real Estate | Mimico, Toronto W06 Real Estate | Mississauga Real Estate | Mississauga Valleys, Mississauga Real Estate | Niagara Falls Real Estate | Old Oakville, Oakville Real Estate | River Oaks, Oakville Real Estate | Rose, Burlington Real Estate | Roseland, Burlington Real Estate | Scott, Milton Real Estate | Sheridan, Mississauga Real Estate | Snelgrove, Brampton Real Estate | South East, Oakville Real Estate | Stoney Creek, Hamilton Real Estate | Waterdown Real Estate | Waterdown, Hamilton Real Estate | West Humber-Clairville, Toronto W10 Real Estate | West Oak Trails, Oakville Real Estate | Woodbine Corridor, Toronto E02 Real Estate