October numbers are in and as outlined in this months infographic, confirms that the persistent lack of inventory is at the lowest since 2010 and contributing to the flattening of downward trending home prices over the past 3 months.
The Bank of Canada increased its overnight rate +50 basis points on October 26th to 3.75% and expected to continue its quantitative tightening in the next announcement on December 7th.
1.5 million homes to be built in the next 10 years announced on October 25th. A commitment made by Ontario's Ministry of Municipal Affairs and Housing contained in the "More Homes Built Faster Act". Cutting red tape, which has been known as a major contributor in slowing growth, is now an area of focus.
Also, effective October 25th 2022, the Non-Resident Speculation Tax (NRST) rate was increased to 25 per cent. The NRST applies on the purchase or acquisition of an interest in residential property located anywhere in Ontario by individuals who are foreign nationals (individuals who are not Canadian citizens or permanent residents of Canada) or by foreign corporations or taxable trustees.
My thoughts: Considering future estimated immigration levels (500,000 annually by 2025), unemployment rates (Currently at 5.2%), record low inventory and high demand, I anticipate that when the overnight rate increase's ease, buyer's & lending institutions will rapidly adjust and prices will rebound quickly.
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