This is just in from TD Economics, a .75% Prime rate increase is expected to be phased in – probably in 1/4% increases – starting in July 2017 and being fully in by December.
The rates they show below are for corporate rates, consumer rates are a bit higher.
Consumer prime is at 2.7% today so that would be the same increase of .75% taking it from 2.70 to 3.45% by the end of 2017.
• Our current forecast is for the Bank of Canada to begin raising interest rates in July of 2017, increasing the policy rate to 1.25% (from its current level of 0.5%) by the end of 2017. It is possible that with additional infrastructure-led growth the Bank may choose to begin hiking rates earlier and perhaps more aggressively.
All this and more from Calgary, Alberta top mortgage broker, Mark Herman.
Wages and home prices are sticky – economically speaking. No one wants to work for less than they did yesterday or sell their home for less either. So the prices hold.
Today, any busy real estate agent will tell you the home market for anything less than $450 – 500k is moving quickly if priced correctly. $500 – 750k is slower and above $750k is very slow. This all makes perfect economic sense.
Below is part of an article from the CBC summarising the numbers.
All this and more from Mark Herman, Calgary, Alberta top/ best mortgage broker for home purchases.
Diversifying economy helps home prices remain steady
Calgary’s housing market continues to hold its own despite weak energy prices, according to a Royal LePage House Price Survey released today.
The report cites a diversifying economy as the reason aggregate house prices rose 0.8 per cent from last year to $465,374.
Here’s the breakdown in median prices based on house types in Calgary:
- Single-family two-storey home prices rose one per cent on a year-over-year basis to $522,052
- Bungalows dropped slightly by 0.4 per cent to $451,937.
- Condominiums experienced an increase of three per cent to $310,665.
The average two-storey house price in Calgary in the second quarter was $509,937, while bungalows cost $452,970 and condominiums $304,624. The average overall price was $457,894.
“Economic slowdowns in energy-dependent markets, most notably in Western Canada, have in part been offset by both renewed industrial activity in other parts of the country and the Bank of Canada’s recent interest rate cuts,” said Phil Soper, chief executive officer of Royal LePage, in a news release.
“In line with recent quarters, strong national home price increases are largely being driven by continued double-digit percentage increases in the Greater Toronto Area and Greater Vancouver, where housing affordability is already becoming a growing challenge for many individuals and families,” Soper said.