Bank of Canada maintains overnight rate target at 1 per cent

Ottawa -

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

Global economic growth has evolved largely as anticipated in the Bank’s April Monetary Policy Report (MPR).  In the United States, the economic expansion is progressing at a modest pace, with continued strengthening in private demand partly offset by fiscal consolidation. Japan’s economy is beginning to respond to significant policy stimulus. Europe, in contrast, remains in recession. Growth in China has continued to ease from very strong rates, weighing somewhat on global commodity prices. The Bank continues to expect global economic activity to grow modestly in 2013 before strengthening over the following two years.

In Canada, recent economic indicators suggest that growth in the first quarter was stronger than the Bank projected in April. For the year as a whole, growth is expected to remain broadly in line with the Bank's MPR forecast. Over the projection horizon, consumer spending is expected to grow at a moderate pace, business investment to grow solidly, and residential investment to decline further from historically high levels. Growth in total household credit is slowing and the Bank continues to expect that the household debt-to-income ratio will stabilize near current levels. Exports are projected to continue to recover, but to be restrained by subdued foreign demand and ongoing competitiveness challenges, including the persistent strength of the Canadian dollar.

Core inflation is in line with the April MPR projection, while total CPI inflation has been slightly weaker. Both total and core inflation are expected to remain subdued in coming quarters before gradually rising to 2 per cent by mid-2015 as the economy returns to full capacity and inflation expectations remain well-anchored.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent.  With continued slack in the Canadian economy, the muted outlook for inflation, and the constructive evolution of imbalances in the household sector, the considerable monetary policy stimulus currently in place will likely remain appropriate for a period of time, after which some modest withdrawal will likely be required, consistent with achieving the 2 per cent inflation target.

RE/MAX continued to outperform all competitors in the REAL Trends Canadian 250 as it has every year since the annual survey’s debut in 2010. Based on 2012 production numbers, RE/MAX placed 159 brokerages in the top 250, the closest competitor qualified only 25. RE/MAX also led all franchises in transaction ends per agent.

“There is no denying that consumers prefer RE/MAX agents above those at our competitors,” said Dave Liniger, Chairman and Co-Founder, RE/MAX LLC. “In Canada, RE/MAX agents have outsold the competition every year since 1987. That’s because RE/MAX agents are experienced professionals who know how to provide a high level of customer service.”

REAL Trends Canadian 250 highlights:

• RE/MAX agents averaged 16.7 transaction ends per agent, while all other agents in the survey averaged 9.3.
• RE/MAX agents closed 60% of the 485,000 transaction ends in the survey, and 56% of the $181 billion sales volume.
• Among the top 25 brokerages in ends per agent, 24 were RE/MAX.
• For RE/MAX agents, the average transaction ends per agent increased more than 6% from 2011.

RE/MAX first began franchise operations in Canada in 1977 and now has nearly 19,000 Sales Associates working in more than 750 offices.

In the U.S., RE/MAX agents also ranked as the most productive real estate professionals. Released earlier this month, the 2013 REAL Trends 500 showed that more RE/MAX brokerages met the survey’s competitive qualifications than brokerages with any other competitor.

The survey showed that U.S. RE/MAX sales associates averaged 17.1 transaction sides in 2012. That figure was more than twice as high as the 7.9 average of all competing agents in the survey. RE/MAX also placed 40 brokerages in the top 50, when ranked by per-agent transaction sides – one of the most meaningful measures of productivity.

For more information about the REAL Trends Canadian 250 or the REAL Trends 500, visit realtrends.com.

Greater Victoria Residential Real Estate Transitions to a Balanced Market

VICTORIA BC - Weighing in on the best April since 2010, Shelley Mann, President of the Victoria Real Estate Board, is cautiously optimistic that the Greater Victoria is back into a balanced market.

"Consumer confidence is increasing," Mann says. "Our total number of sales for April is 615, a 5% increase compared to April 2012 with 586 sales. On the residential side, more properties are selling, and slightly fewer are entering the market, so we are moving from a buyers' market to more balanced market conditions."

Mann's cautions that one month doesn't indicate a market trend, but is encouraged by increased showings by REALTORS®, the number of sales, and comments from other REALTORS® about multiple offers on properties.

Prices remained relatively flat, as predicted by Cameron Muir, Chief Economist of the BC Real Estate Association. There were 367 single family homes sold in April at a median price of $540,000, a 16% increase of homes sold over April 2012. Condominium sales were 149 at a median price of $265,000 and with 62 townhomes sold at a median price of $415,450. There are 4,585 active listings.

Total Waterfront Single Family Dwellings sold: 15, up 2 over April 2012 
Total Non-waterfront Single Family Dwellings sold: 352, up 36 over April 2012
Single Family Dwellings sold over $1 million: 30 (5 over $2 million)