Here’s what they told BNN,

Needing a return to normal

Kevin Somers, COO, Royal LePage

“Since the onset of the Great Recession nearly a decade ago, Canada’s economy has been running on emergency power, provided mainly by low interest rates. The Bank of Canada’s indication of an imminent rate hike is a positive signal that the Canadian economy is in a place of stability and ready to withstand a slight interest rate increase.

We believe that the real estate market is best served by a healthy economy that requires a return to normal conditions.”

Conflicting fears

John Pasalis, president, Realosophy Realty Inc.

“Bank of Canada raising interest rates by 25 basis points would have a dampening effect on the demand for homes – but I’m not convinced we’re going to see any immediate effects.

The psychological effects of this rate increase might counterintuitively have a positive effect on the real estate market. If buyers believe interest rates will increase even further in the near future, some of those sitting on the sidelines watching the cooling market with uncertainty may get back into the hunt.”

Tub Filled by a Hot Springs in Colorado Resort Built in an Old Mining Ghost Town. 

Anyway, Bank of Canada has finally stopped crying wolf, and raised interest rates by 25 basis points Wednesday.

That’s no surprise. What surprised many people is  the Loonie flew!