The Bank of Canada cut its key rate to 0.5% today despite concerns of Canadians accumulating even more debt or further stoking the already hot real estate markets of Vancouver and Toronto.
It’s welcome news here in Calgary where the market is seeing “signs of turning around, or at least stabilizing…[the] deep dive in new listings has helped re-balance the market and stem the price decline.” (Source: BMO)
TD has already reduced their prime lending rate, but by only 0.1%. Other banks will follow suit with cuts of their own which will help nudge some buyers off the fence and spur additional activity.
Sales in Calgary remain below year ago levels but are balanced out by a reduction in new listings. A total of 851 homes have sold through two weeks, down -16.57% year-over-year but off the 5 and 10 year average by only -5% and -2.3%.
New listings are down -10.59% from last July. Compared to historical levels, they are up 0.48% from the 5 year average but below the 10 year average by -7.58%.
It’s shaping up to be a stable month which will benefit from the extra little push thanks to the Bank of Canada.