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Upcoming possible policy changes in Canada's housing market can impact homebuyers and homeowners. Staying infomed is the best strategy.
COVID-19 has disrupted Canada's housing market. As you may be aware, housing prices are at a never-seen-before high. As per the Oct Market report, average prices have increased by more than 19% since last year! This is part of an ongoing trend, between 2004 to 2021, house prices have increased from $200,000 to $700,000!
With current low interest rates, the housing market is estimated to keep growing. Buyers are hoping to ride the wave and move in on the right properties. But as inflation increases, a policy change may be on its way.
Bank of Canada has already signaled at hiking mortgage rates in 2022. As inflation adjusts to a predicted recovery from the impact of COVID-19, the housing market will see a long-term impact too. A recent poll by Reuters shows that while this may not decrease competitiveness immediately, the demand-side is expected to be affected over the next two years.
What does this mean for homeowners like you?
As a homeowner, it is important to be aware of market changes and keep your debt in check. It is also important to evaluate your property's value in this market and get advice on how it may change in view of changes in inflation and interest rates. If you are an upgrader, be sure to opt for a fixed-rate mortgage.
Bottom line: the market is highly volatile and the future depends on suggested policy changes. The best move is to do your research before you decide to sell.
If you are looking for guidance on your property's value or want to evaluate your home's worth, let's have a conversation. I have over 7 years of experience in Toronto's housing market and have made over 150 transactions. I'd be happy to offer my expertise to you and help you in your selling journey.
Call 647-787-8979 or email ross@soldhistory.ca to book a free consultation today.
Stay informed!
Track interest rates here.
Track Inflation rate here.
Read Bank of Canada's monetary policy reports here.
Track key housing market statistics here.
