The Bank of Canada announced last week that the interest rate would stay at 5 percent. This to most people would be a positive as it did not go up but there is also the other side of the coin which presents the fact that it did not go down either. The average price of a house in London Ontario is around 620,000 dollars.
This number is low compared to the greater Toronto area but there was a time when you could buy a house for much lower. Therefore, making the decision to hold the interest rate gives Canadians a sigh of relief that things will stay the same for now when they are looking to buy a home. Adam Miller is an executive chair member of the board of realtors for London and St Thomas Ontario and he spoke about the reaction from his peers as a realtor, as well as how the general public responded.
Adam said that the realtors board has been ‘against the interest rate’ for quite some time and that they knew the people would be pleased but they would likely want to see a decrease more than just a hold. He said they would have wanted to see ‘more pressure on a downward trend’ and they are not satisfied but are glad that the rate did not go up. Adam says even though it’s not the outcome that was most wanted it is still a positive step in the real estate world. Canadians can keep calm for now as the interest rate is not rising but they should stay hopeful for a decrease in the near future.
