With rising interest rates, home values have dropped significantly and are inching towards further decreases following our most recent rate hike. We are also seeing a less competitive purchasing process, offering potential buyers more flexibility.
Buyers can purchase a home today at a higher interest rate and see a SMALLER monthly payment than when compared to the same property purchased at the lower 2021 interest rates. This is because home prices have come down in value.
You can’t change the price you pay for your home, but your mortgage rate will change many times. Over the past 30 plus years, when rates have risen, they have historically always come back down.
REMEMBER, history has proven to show us that in inflationary periods, rates rise, and home values drop, BUT following each inflationary period is a recessionary period, in which rates drop and home values rise.
We anticipate demand to rise substantially in the coming years with the governments promise to welcome $400,000+ new immigrants to Canada each year & continuing. With the cost to build pushing housing starts to the side lines, and our economy’s low supply in homes already prevalent, this will likely cause prices to jump once again.
With that being said, it is always difficult to fully predict the future. However, there are many promising opportunities ahead in the next twelve months as the fundamentals of our Canadian real estate market remain strong.