Everyone wants to know what’s happening in the market. Are prices going up or down? The answer is “yes”.
Supply Shortage
The prices are actually going up due to the shortage of properties available for sale, There is very little product available. There are lots of “would be” Buyers who would like to get into the market.
Builders have either stopped building or placed their projects on hold.
Thaistrend will continue! This drives the prices “up”.
Interest Rates
Interest rates are going up. The Bank of Canada in order to combat inflation has increased the prime rate 7 times in 2022. There could be another increase in January 2023. That means fewer Buyers can afford to get into the market. It also means that Buyers can’t move up to the house that they wanted to buy. This translates into lower overall prices.
This trend will come to an end shortly! This drives the prices “down”.
Two Trends at the Same Time
So, what we have right now is two trends working on the market in opposite directions. One up, the other down.
Stabilization
It looks like we have reached the low point. A good time to buy would be now, rather than absolutely trying to “time” the market right down to the perfect month.
If you are selling, take a second thought. As long as you can afford to stay, that should make good sense.
Trading Up
You should do business now or over the next few months.
Trading Down
You should do business later, when the prices are on the incline.
Brian Madigan LL.B., Broker