You may be wondering…
Why exactly is this happening ❓
Bank of Canada is increasing interest rates with efforts to get back to pre-pandemic levels as they try to reduce the amount of focus on investing, borrowing, and getting inflation under control. We’re experiencing higher inflation in Canada than expected due to supply chain issues and world events effecting our economy.
How does this effect the real estate market overall ❓
With the home prices going down, the market is onto restoring balance. As mortgage rates increase, the effect on real estate investing can be positive! For instance, the rental market will increase as fewer individuals will qualitify for mortgages. This is a ideal for investors!
What to expect in the next few months ❓
Economists predict that within 2 years we’ll likely start to see world events come back together, helping bring inflation levels back down. In the meantime, the Bank of Canada is focused and dedicated to raise rates to help sustain a strong economy. With a strong economy the real estate market will thrive.
Have more questions? Feel free to reach out to us we’re here to help you navigate this market!
Resources:
https://www.bankofcanada.ca/2022/07/fad-press-release-2022-07-13/