With the market continuing to be affected by the Bank of Canada’s mortgage rate increases, we are seeing moderate declines in almost all housing categories and districts. The much-anticipated announcement from the Bank of Canada is scheduled for September 7, 2022, and it is sure to have an impact on the market. Should the mortgage rates increase, it is likely we will see a further decline in pricing. Should they stay flat, we will likely see a flood of buyers getting back into the market.
Naturally, you will hear a lot of opinions in the media and from real estate professionals about what is happening in the market. While some of the advice can be beneficial, it is always important to stress that YOUR situation is unique to you, and you should be doing what is in the best interests of your family at any given time. Can the market go down further? It’s very possible. Do increased mortgage rates reduce your overall buying power and the maximum price you can purchase for? Absolutely.
Is it better to wait? Well, that depends on if you currently own a home, if you are upsizing if you are downsizing if you are in the market for the long term. As you can likely tell, what you should do is 100% unique to your personal situation. Right now, we have clients who are upsizing from townhouses into detached houses because the pricing for detached homes has gone down more than it has for townhouses and they are in a BETTER position to buy now. We have clients who are downsizing and moving further west, where there have been much sharper declines than in their market, which is making now a BETTER time than it was several months ago.
The best thing for you to do is connect with a real estate professional, discuss your personal situation and have them put together a blueprint for creating the future you want. One of the most beneficial things a consumer can have created for them is a Net Proceeds Report. We create a Net Proceeds Report for all of our clients and it shows them the financial breakdown of what a real estate transition means for them. We also compare it to what it would have been like in the peak of the market, and in many cases NOW is a better time for them than it was in the peak.
As always, you can contact us to book your private consultation to see what makes the most sense for you. You can watch our video update on the market below and click any one of the links to access the details on how your market of interest performed in August.