The big question on a lot of real estate investors mind. Whats going on with interest rates and the market this year? Although the bank of Canada has not signalled any cuts yet, there is growing concern of the slowing economy and where this will lead the country as a whole as we proceed throughout the year. Higher mortgage rates tend to make up a good portion of the inflation we are currently seeing which is around 3.4% as of last month. This figure is based on december spending which is typically higher due to the holidays. As rate cuts begin to happen this should help ease inflation and bring it back down around the 2% target the bank is looking to achieve. Give this article a read and see what you think for yourself! Article sourced from form mpamag.com
There has been quite a stir and a lot of pent up demand from both buyers and Sellers waiting to see a sense of stability. From what current projections are telling us we could be looking at a modest rebound in the markets this year. With mortgage rates already declining and a lot of positive sentiment a float there seems to be action taking place on both sides of the aisle. From Sellers wanting to list to Buyers beginning to come out of the wood works and purchase. Mortgage delinquincies are at an all time low being below 1%. 40% of the renewals taking place this year have already been taken care of and people seem to be tightening their belts and cutting costs to hold on to their homes. So what does this mean for the market? Well in layman's terms it means it essentially signals that we are looking at a balanced stability as is. As things start to heat up in the spring I expect more competition to flow but also more properties to begin listing. This could have a somewhat balanced effect as Buyers and Sellers adapt to the new normal. As for Sunshine Coast Real estate this means a flurry of excitment for home investors alike.
Don't wait to time the market. Get in the market and wait!