Despite another rate hike from the bank of Canada, activity remained similar to last month with 4,961 sales taking place, and homes available for sale staying around the 13,000 mark. This shortage of homes kept the average price stable, similar to last month, at $1,089,428, and is 9.9% higher than the end of 2021.
The Bank of Canada’s most recent messaging suggests that they are reaching the end of their tightening cycle and bond yields dipped as a result, suggesting that fixed mortgage rates may trend lower moving forward, which would help affordability and thus sales.
There are so few homes available for sale, any kind of small uptick in demand could lead to a repeat of rapid price increases as we have experienced before. Despite short-term economic uncertainty, there is no doubt that in the medium-to-long term, the demand for housing will rebound and rebound quickly due to the shortages that are so evident.
This is a complicated real estate market to navigate. It is highly regional with some areas selling very quickly while others languishing. In this type of market there exist great opportunities to upgrade your home or, now that there’s been a rapid increase in rental rates, an opportunity to buy an investment property.
While the increase in borrowing costs have knocked some buyers out of the ability to purchase property, many others who can qualify, have chosen to sit on the sidelines and wait and see what happens. That is a mistake. If you’re not sure, or if you know of someone who needs to talk about the market, please give me a call, and let’s talk!
Have a great November!
The Bank of Canada’s most recent messaging suggests that they are reaching the end of their tightening cycle and bond yields dipped as a result, suggesting that fixed mortgage rates may trend lower moving forward, which would help affordability and thus sales.
There are so few homes available for sale, any kind of small uptick in demand could lead to a repeat of rapid price increases as we have experienced before. Despite short-term economic uncertainty, there is no doubt that in the medium-to-long term, the demand for housing will rebound and rebound quickly due to the shortages that are so evident.
This is a complicated real estate market to navigate. It is highly regional with some areas selling very quickly while others languishing. In this type of market there exist great opportunities to upgrade your home or, now that there’s been a rapid increase in rental rates, an opportunity to buy an investment property.
While the increase in borrowing costs have knocked some buyers out of the ability to purchase property, many others who can qualify, have chosen to sit on the sidelines and wait and see what happens. That is a mistake. If you’re not sure, or if you know of someone who needs to talk about the market, please give me a call, and let’s talk!
Have a great November!