The Bank of Canada has matched economists’ forecasts and dropped rates again, this time by one-half of a percentage point.

Even better, Canada’s big banks have acted quickly to match the cut. BMO chopped it’s prime rate to 2.50% just one minute after the BoC’s announcement. RBC matched the cut 3 minutes later.

The BoC left the door open for another rate cut, saying: “The target for the overnight rate can be expected to remain at this level or lower at least until there are clear signs that excess supply in the economy is being taken up.”

Now that prime rate has dropped to 2.50%, variable rates are falling accordingly. The typical closed variable (for new mortgages) is now just 3.30%, down from 3.80% Monday.

What about fixed rates?

For now, we’re once again in a wait-and-see mode. Fixed-rate spreads have improved ever-so-slightly lately. However, lenders have not cut long-term fixed rates by any appreciable amount in the last week or so. In short, the BoC announcement has been a relative non-event for 3-5-year fixed rates. Going forward, fixed rates will continue to be driven by the economy and bond yields.
The Bank of Canada’s next interest rate meeting is April 21, 2009.

A decline of a third in home sales isn't usually considered good news. But compared with the figures for the previous two months, February's drop of 32 per cent actually is a glimmer of hope for the Greater Toronto Area's battered real estate market.

December and January posted sales declines of 45 and 47 per cent, respectively, from a year earlier. Prices also were down.

Yesterday, the Toronto Real Estate Board reported that the rate of decline had slowed in February.

In 2008, 6,015 housing units changed hands at an average price of $382,048. In 2009, that dropped to 4,120 homes sold at an average price of $361,305.

"A considerable number of transactions continued to take place," president Maureen O'Neill said. "Motivated buyers and sellers, who were aware that market conditions changed over the past few months, were able to negotiate transactions acceptable to both parties."

A general slowdown in the economy and Mayor David Miller's controversial land-transfer tax kept would-be home buyers on the sidelines in December and January, said Jason Mercer, senior manager of market analysis at the real estate board.

But now that the bidding wars of recent years have ended, buyers are more likely to find what they're looking for at more affordable prices.

"The one thing that we have seen is an improvement in affordability in the resale market," Mr. Mercer said. "When we do see some economic recovery ... as we start to see the impact of a stimulus package both in Canada and the United States, what that points to is the housing market should turn around fairly quickly."

Until then, potential home buyers are taking their time before making an offer. Homes that sold in February, 2008, had been the market for an average of 30 days. Those that sold last month were listed on average for 45 days.

Sellers, too, were in no rush to put their homes on the market, as the number of new listings last month dropped 11 per cent compared with February, 2008. The flow of new listings appears to be trending down, this indicates that consumers are withdrawing from the market rather than panicking. However, there is still a large inventory of active listings, which is putting downward pressure on prices and the new homes market.

The real estate board argued that while the economy has affected sales, the housing market is on a solid footing. Typically the spring real estate market tends to experience more activity and with the Canadian economy experiencing a period of low mortgage rates and strong immigration, this trend could continue.
According to Statistics Canada, Canada welcomed 247,202 permanent residents in 2008, 70,000 more than in 1998, and well within the government’s planned range of 240,000 to 265,000 new permanent residents for 2009.

Very kid friendly! This is an easy after school snack or quick lunch or supper when you’re on the run – just add a nice green salad. Substitute your favourite cheeses or mix cheeses for the mozzarella if you like – cheddar, Swiss, Provolone, feta, etc.

Ingredients:

4 Greek style pita bread
1/2 cup tomato sauce (2 tbsp. for each pita) (125 ml)
4 slices of black forest ham, cut in quarters or sliced
1 1/2 cup grated mozzarella cheese, or to taste (375 ml)
4 tbsp grated Parmesan cheese (60 ml)
Coarse salt and freshly cracked black pepper, to taste
Pinch of Greek dried oregano or Italian seasoning, optional
Olive oil, for drizzling

Directions:

1. Preheat the oven to 425 degrees F. Line a large baking sheet with parchment paper for quick clean up.

2. Place the pita bread onto pizzas onto a large baking sheet. Spread tomato sauce evenly over the pitas. Top evenly with ham, mozzarella cheese and Parmesan cheese. Season the pizza with salt and pepper, and the dried Greek oregano if using. Drizzle with a little olive oil. Bake until cheese is golden and bubbly, about 10 to 15 minutes. Cut into quarters and serve.