Home prices are still high
Despite an aggressive monetary tightening policy by the Bank of Canada, home prices remain elevated in many parts of the country.
Around the lower mainland for example, prices are still up year over year.
There are a few reasons for this stubborn price behaviour.
- Those higher interest rates have not been felt in the mortgage market yet. It usually takes 12 to 18 months for monetary policy to take affect. This year and even into early 2024 should be the time when prices really come down.
- There’s not enough inventory on the market. Home owners don’t want to sell and listings have dried up.
- Increasing demand continues to keep prices elevated. Canada just saw a 1 million population growth, the fastest since recent history. On average the country builds about 200,000 housing units per year. That’s not enough given the amount of immigration we’re seeing.
A couple of weeks ago I made this video that goes deeper into these reasons and give a timeline for potentially the bottom of the housing market.
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Ya I wouldn’t want to sell either with the cost of renting through the roof. Not to mention so many stories of people failing to get financing. Ugh. Best to just hold onto what you got.
That’s true. The stress test is still in place so with higher interest rates it’s harder than ever to qualify for a mortgage now.
Mar 27 they lifted the ban on work visa residents on home purchases so it should also give a jolt to the market as well
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One of my friends’ Redfin estimate went from $450k to $330k to $350k and now it’s at $390k
Yeah, homeownership will never be affordable in my lifetime, and that’s OK!
Never say never, pal. You’re really good at hustling so anything is possible. 🙂
But yeah right now things are still crazy expensive.
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Being determined is actually halfway to success, and I think it’s actually important in life. I wasn’t sure about buying a house for a long time, and once I managed to find a great offer, I missed it because I was thinking about it for too long. But later, when I discovered another one, I wasn’t hesitating, and I decided to buyi it. remodeling homes
Real estate is a sprawling domain that intertwines with human aspirations, economic fluctuations, and societal evolution. It’s not just about properties; it’s a reflection of our desires, dreams, and financial prudence. The landscape of real estate is as diverse as the people it serves. From sprawling estates to cozy apartments, each property narrates its own story, echoing the lives lived within its walls.
Despite economic downturns, real estate prices haven’t crashed due to various factors like low interest rates, limited housing supply, and investor confidence. Additionally, government stimulus packages and mortgage forbearance programs have helped sustain market stability amidst uncertainty. Zepto
Real estate markets can exhibit cyclical patterns, characterized by periods of expansion, contraction, and stabilization. Economic indicators, such as interest rates, employment levels, and GDP growth, influence these cycles, impacting both demand and financing options for real estate transactions.
It’s fascinating how global factors like interest rates and supply shortages are impacting real estate markets across different regions. Speaking of dynamic markets, Dubai’s real estate sector is also showing remarkable resilience with ongoing projects and foreign investments continuing to bolster its growth. Whether it’s Canada or Dubai, it seems that strategic investments in property remain a solid choice despite global economic uncertainties.
“Interesting insights on the resilience of real estate prices despite rising interest rates! It’s fascinating to see how factors like demand, supply constraints, and regional market dynamics continue to influence home prices. The situation in the lower mainland is particularly intriguing—looking forward to seeing how these trends evolve in the coming months!”
houses for sale in Calgary
asdacadac
This blog really highlights the intensity of the 2022 home buying trends, especially in hot markets like San Diego. The fact that 55% of homes sold in less than two weeks is a clear sign of how competitive the landscape was. It’s interesting to see how limited supply and high demand drove such urgency among buyers. Even with a slight slowdown expected, the market still seems tough for buyers. Great insights—thanks for sharing!
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