If an economic soft landing is our hope, there was some welcome news this week. Promising inflation numbers provided some confidence and cover to Canada’s central bankers. It’s possible we won’t have to suffer the calamity of deep recession in order to get inflation in check.
In other good news, Canadian fixed interest rates have been declining in recent weeks because of five-year bond yields decreasing. Canadian five-year bond yields have decreased to the 3.8% range, down from the high of 4.4% seen only last month. As bond yields trend lower, five-year fixed mortgage rates drop, giving some relief to buyers and borrowers alike.
In our local market, there were 82 transactions in the week ending Nov 16th, and we closed that day with 2,117 listings. At that rate of sales, which I suspect will decline further due to seasonality, we have over 6 months supply of housing. It’s a tough market for sellers and will continue to be until further declines in borrowing costs are realized.
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