Were you planning to buy a new larger home?
If you're like many, the summer is dragging on and you've been too paralyzed by news of interest rate hikes to do something about it. Its time to do something about it!
The Quite region real estate market grew a giant "pimple" between November 2021 and February 2022. Prices climbed to unbelievable heights due to short supply, extremely low interest rates and a booming economy.
That pimple has popped!
Prices have dropped back to what they were in July 2021, for the most part. I'm looking at Quinte West and Belleville for this data. The next Bank of Canada interest rate announcement is scheduled for September 7. Some are [gleefully] waiting for an even bigger drop in the market. But economists are hinting that the BOC may not raise the overnight rate as sharply as they were planning. The rate will still go up, but maybe by 50 points instead of 75.
The overall sentiment is that we may still tip into a brief recession. But by next year inflation should be back under control, and interest rates will start to come back down. Are we going to see interest rates drop to where they were in 2020-2021?
Not even close.
Are home prices going to drop to where they were in 2018-19? Nope. And they'll start climbing fast again when the bank of Canada finally cleans up this mess. There's more to this housing correction story than just interest rates. Ontario needs 1.5M new homes in the next 10 years. We're barely on track to build 750,000.
Material costs are climbing, the labour pool is shrinking, and immigration is opening up. Oh, and the City of Toronto just increased development fees for builders by 50%. Does that sound like a recipe for a balanced housing market to you? It's time to get into a house you love, at a price you can live with.
I've got some great listings available, and I'd love to show them to you!
You can view the original newsletter here: https://mailchi.mp/39c88d965b7e/quinte-real-estate-insider