Canadian Real Estate Market Update – Q2 2021

The Bank of Canada is maintaining its extraordinary forward guidance on the path for the overnight rate. According to the Bank of Canada’s April 2021 projection, the expected timeline for a policy interest rate hike off the effective lower bound is expected sometime in the second half of 2022.

As the global economic outlook continues to normalize and improve as more economies begin reopening, Canada shows signs of progress by producing strong GDP growth of 1.4% in Q1 2021. The growth was largely fueled by higher prices of exported products, favourable mortgage rates, continued government transfers to households and businesses, and an improved labour market ultimately boosting consumer spending.

Read our quarterly Canadian Real Estate Market Update, produced by our Strategy, Planning and Analytics team, for discussions on the current state of each asset class and the outlook for 2021.