22 July 2014

Alexander says real estate market will probably see a price correction when the Bank of Canada starts raising its overnight rate. This change is expected in the fourth quarter of 2015.

Economists say the Bank will raise its key lending rate slowly and reach the level, which is lower than before the 2008-09 recession, setting a new normal range of 3.0%-3.5%.

It should be noted that the Bank of Canada has kept its overnight rate at 1% since September 2010.