The Bank of Canada announced this morning it was once again holding its target for the overnight rate at 1 per cent.  In the statement accompanying its decision, the Bank highlighted that while total CPI inflation has risen close to its 2 per cent target in recent months, the rise is due to temporary effects of higher energy prices and exchange rate pass-through from a lower loonie.  The Bank also noted that slower than expected global economic growth has trimmed the Bank's Canadian economic outlook for the next two years. This means the Canadian economy will be delayed in reaching full capacity, now expected in 2016 rather than 2015.

In spite of low inflation and disappointing growth, the Bank of Canada remains wary of easing monetary policy further at risk of upending the delicate balance of over-indebted Canadian households.  Interestingly, the Bank explicitly stated that it remains neutral with respect to both the timing and direction of the next change in interest rates, which leaves the door open for a rate cut should incoming data warrant it.  That said, we still expect that the next move for the Bank to be in the direction of higher rates. In particular, recent momentum in consumer prices, if sustained, may push the Bank to act sooner rather than later though very likely not until early to mid-2015.

“Copyright British Columbia Real Estate Association. Reprinted with permission.” BCREA makes no guarantees as to the accuracy or completeness of this information. 

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!

JUNE SURVEY SUMMARY

Property Type:

30.9% of purchases were by Move-Up Buyers (up from 28.6% in May) * 
20.7% by First Time Buyers  (up from 18.5%) *
13.0% moving from Single Family Home to Strata Unit (down from 15.2%) 
9.3% buying Revenue/Investment Property  (up from 7.4%) * 
5.3% moving into Retirement Home/Seniors Community  (up from 4.4%) *
4.3% buying Recreation Property  (down from 6.4%)
2.8% moving from Strata property to Single Family Home (down from 5.1%) 

* During June, there were increases in purchases by move-up buyers, first-time buyers, retirees moving into seniors communities, and investment property buyers compared to the previous month.

Buyer Type (Family Dynamic):
28.4% Two Parent Family/Children (up from 21.9% in May) **
24.9% Couple without Children (up from 24.5% in May) **
21.3% Empty Nester/Retired (down from 21.9%)
11.9% Single Female (down from 17.9%)
9.9% Single Male (down from 10.6%)
2.7% Single Parent with Children (down from 3.6%)

** There were more purchases by two parent families and couples without children during June than in May.

Moving From: 
57.9% from Within OMREB Board Area  (up from 57.7% in May) *** 
18.2% from Alberta (up from 16.3%) ***
9.8% from Lower Mainland/Vancouver Island  (same as May)
8.6% from Other Areas in BC  (up from 7.3%) ***
2.1% from Eastern Canada/Maritimes (down from 3.7%) 
1.8% from Outside Canada  (up from 1.0%) ***
1.2% from Saskatchewan/Manitoba (down from 4.3%) 
0.3% from NWT/Yukon (up from 0%) ***

*** Compared to May, more buyers moved from within the Board area and other areas of BC, as well as from Alberta, Northwest Territories and Yukon, and outside Canada in June. Movement from other areas stayed the same or declined.