How is the real estate market adjusting after last weeks Bank of Canada's overnight rate increase 25 points to .50%? It's a little early to tell but, fact is, affordability will go down for some buyers. As a result, the decision to compete in the current market, may be in question for them.
High demand caused by strong immigration (Including permanent residents obtaining citizenship status) and continued low inventory levels will affect increases in property value.
“We have seen a slight balancing in the market so far this year, with sales dipping more than new listings. However, because inventory remains exceptionally low, it will take some time for the pace of price growth to slow. Look for a more moderate pace of price growth in the second half of 2022 as higher borrowing costs result in some households putting their home purchase on hold temporarily as they resituate themselves in the market,” said TRREB Chief Market Analyst Jason Mercer.