The recent interest rate cut was welcome news for players in the real estate market as well as homeowners who will see their monthly mortgage payments reduced.
The decision made by the Bank of Canada will not only result in lower mortgage payments but will have an overallpositive effect on Quebec’s economy, including real estate. The interest rate decrease will likely lower the Canadian dollar’s exchange rate, thus making our exports more attractive, stimulating the economy and creating jobs.
In a previous blog about the health of the real estate market, I explained that the success of the real estate market depends on 3 factors: interest rates, consumer confidence levels and demographics. In the current context, interest rates, lower oil prices and confidence in the stability of their jobs will help increase consumer confidence levels.
When it comes to demographics, job creation in Quebec will promote a positive interprovincial and international migration trend for the province. The resulting population growth is sure to create activity in the residential real estate market.
Good news for 2015!