As widely expected, the Bank of Canada cut it's key policy rate by 25 basis points to 4.25% TODAY.
Today is the THIRD cut since June, in response to near-zero economic growth in 2H 2023. We're seeing stronger economic growth this year (2.1% growth in Q2 2024), and is expected growth will remain flat for the remainder of 2024 with continued progress easing inflation.
Key target for inflation is 2% per year.
Another key concern for the Central Bank is the current unemployment rate, which rose to 6.4% in June and stayed there in July. Hiring has been weak, and particularly acute to youth and newcomers to Canada.
Next Bank of Canada Key Date: October 23, 2024
As it relates to the real estate market here in Calgary, we've seen an improvement in total inventories near end of summer (always the case given the season), and based on the work I've been doing for my clients, this has been the best time to buy with more selection. That said, great properties are still lasting less than 1 week on market!
In relative terms, our total active listings remains~21% below the 5-year average, and sales are ~8% above the 5-year average – long story short, market remains robust going into the fall (see below).
