The bank has announced its 6th straight hold at a 5% key lending rate. The central bank said that "While inflation is still to high and risks remain, CPI and core inflation have ease further in recent months. The Council will be looking for evidence that this downward momentum is sustained". The next scheduled announcement is June 5th. Stability is good for the market, but many first time home buyers are till waiting to see a decrease in percentage points, and this is leading to some pent up demand.In other news, the Federal government has announced a top up to the Housing Accelerator Fund of $400 million dollars. This is a $6 Billion dollar investment aimed at reducing delays in building new housing. In order for municipalities to be able to access these funds, they must remove constrictive zoning. What does this mean for the Ottawa homeowner? Well, it means that properties currently zoned R1, or one detached home only, will now be zoned for 4 units (R$).
It will have a direct impact on land values to be sure, and is something to be keeping a close eye on.
Properties most affected will be those on arterial roads, and those within two blocks of arterial roads. In other words, the closer your home is to public transit, the higher the likelihood that your property will be zoned for 4 or even 6 units within the next two years.