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Bank of Canada Interest Rate Schedule for 2023

May market stats for Victoria are out! The market is always changing but the past four months specifically have been a transitional period.

Last year marked the most aggressive interest rate increases we have seen, and the Bank of Canada announced another 0.25% increase in January of this year, bringing its policy rate to 4.5%.

However, in March and again in April, the Bank of Canada announced a hold on the policy rate, and with that, people felt more confident navigating the market with a greater sense of stability.

The Bank of Canada interest rate announcements are pre-scheduled for the year, with the next one coming up on June 7. And we can suspect that whether they hold, or increase the policy rate, we’re going to see a change in market activity.

Bank of Canada interest rate announcement schedule for 2023:

January 25 (0.25% increase to policy rate of 4.5%)

March 8 (hold at 4.5%)

April 12 (hold at 4.5%)

June 7

July 12

September 6

October 25

December 6

The Victoria Real Estate Board market statistics for May marked the fourth consecutive month of an increase in sales activity.

Previous Year

(May 2022)

Properties Sold:

761

Active Listings:

1,776

Benchmark Single Family:

$1,424,000

Benchmark Condo:

$619,500

Previous Month

(April 2023)

Properties Sold:

637

Active Listings:

2,043

Benchmark Single Family:

$1,295,800

Benchmark Condo:

$564,000

Current Stats

(May 2023)

Properties Sold:

775

Active Listings:

2,189

Benchmark Single Family:

$1,297,600

Benchmark Condo:

$569,300

The benchmark pricing for condos and detached homes has been creeping up, but those numbers are still lower than the benchmarks we were seeing last year. This is a good sign because the rapid increase we saw in benchmark pricing was characteristic of an unsustainable market, which is what prompted the interest rate increases and the introduction of the Home Buyer Rescission Period – in an effort to cool down the market.

The Home Buyer Rescission Period hasn’t been significant in today’s market, as buyers are able to make competitive offers with the conditional period they need, however, when we are in another intensely competitive market, we’ll start to see the effects of the rescission period play out.

When’s the best time to buy?

If you’ve been following finance specialists, mortgage brokers, and other agents, you’re probably familiar with this statement, but it’s worth repeating: generally speaking, even though interest rates have increased, if you can afford to buy the home you want now, then now is the time to buy, it’s less competitive, prices aren’t as high as they were when interest rates were lower, and you can always refinance in the future.

Homeowners

As a homeowner, it’s worth getting an updated home equity check, as the market has changed considerably, especially in neighbourhoods where there’s a limited number of listings available. In some sub-markets, homes that didn’t sell at the end of last year, are now getting re-listed at the same price or higher and going quite quickly.

Buyers

If you’re thinking about making a move this year, the best step that you can take to set yourself up for success is to meet with a mortgage specialist. That way you have a realistic perspective on what you can afford, it may be more than you thought, it may be less than you thought, but it gives you a solid point to work with so that we can build an effective plan to achieve your home ownership goals.

Let us work for you

No matter what stage you’re at, we’re always happy to learn more about your real estate goals and how we can help, whether that’s providing a home equity check, connecting you with mortgage specialists who we recommend, or reviewing the numbers for neighbourhoods you’re interested in.

Contact us: 250-634-2141 (call or text) or [email protected]

Book a complimentary home valuation: https://calendly.com/alex-nph/30min?month=2023-05

Subscribe to our monthly newsletter & receive our Buyer’s and Seller’s Guides (PDFs): https://northpacifichomes.ca/guides/

Thank you for being here,

Alex Hughes* and Ricki-Lee Jewell, Victoria, BC Real Estate Agents

*Personal Real Estate Corporation

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