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
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“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!”
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