The Bank of Canada announced this morning that it is maintaining its target for the overnight rate at 1 per cent. The Bank's target rate has now remain unchanged for 29 consecutive meetings. In its accompanying statement, the Bank noted that inflation in Canada remains low and is expected to remain below the Bank's 2 per cent inflation target this year due to slack in the economy and heightened retail competition. The Bank left is forecast for Canadian economic growth unchanged at 2.5 per cent this year and next, citing a strengthening global economy and ramped up business investment. The Bank also noted that recent developments are in line with the its expectations of a soft landing in the housing market, though elevated household debt remains a risk should economic conditions deteriorate.
While some expected a slightly more dovish note from the Bank given continued muted inflation and a slight rise in the dollar, the Bank remains decidedly neutral. An expected second half rebound in growth and firming inflation means that the next move for interest rates is likely higher, but the timing of that move remains uncertain. Our view remains that the overnight rate will stay at its current level until at least early 2015.
Information provided by www.bcrea.bc.ca
Every month the Okanagan Mainline Real Estate Board (OMREB) does a survey to get a better understanding of buyers. Below is a summary of the survey that shows what types of properties are being bought, the family dynamic of buyers and where the buyers are coming from. If you have any questions about this survey or any other Kelowna real estate stats, call The Dion-Ivans Real Estate Team!
MARCH SURVEY SUMMARY
24.7% of purchases were by Move-Up Buyers (down from 27.7%)
22.3% by First Time Buyers (down from 27.7% in February)
11.6% moving from Single Family Home to Strata Unit (up from 10.9%) *
7.4% buying Recreation Property (up from 5.9%) *
7.0% buying Revenue/Investment Property (up from 6.7%) *
4.2% moving into Retirement Home/Seniors Community (up from 3.4%) *
2.8% moving from Strata property to Single Family Home (down from 5.0%)
* During the month of March, there was an increase in purchases of recreation and revenue properties, as well as people moving to Strata units and Seniors communities, compared to the previous month.
Buyer Type (Family Dynamic):
28.6% Couple without Children (up from 24.2% in February) **
21.4% Empty Nester/Retired (up from 17.5%) **
20.0% Two Parent Family/Children (down from 31.7%)
13.6% Single Male (down from 14.2%)
10.9% Single Female (up from 6.7%) **
4.1% Single Parent with Children (down from 5.0%)
** There were more purchases by couples without kids, empty nesters/retirees and single females during March than the previous month.
50.5% from Within OMREB Board Area (down from 59.8% in February)
17.1% from Alberta (down from 18.0%)
13.6% from Other Areas in BC (up from 8.2%) ***
11.6% from Lower Mainland/Vancouver Island (up from 7.4%) ***
3.2% from Outside Canada (down from 4.1%)
0.8% from Saskatchewan/Manitoba (down from 0.8%)
2.3% from Eastern Canada/Maritimes (up from 1.6%) ***
0% from NWT/Yukon (same as February)
*** Compared to February, more buyers moved from within other areas of BC, the Lower Mainland/Vancouver Island, and Eastern Canada/Maritimes in March.
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