12 April 2023
This is the sequence of interest rate increases. From the first increase to the last, the net effect was a 20% decline in property values.
In part, that’s attributable to the affordability factor. Buyers only have so much money.
In addition, there is a secondary effect. While these increases keep up, the prices will continue to decline. In fact, if you were a Buyer wouldn’t you want to wait until the end? The general advice is “buy low, sell high”. On the buy side, that means waiting and waiting until you see that everyone else is ready to jump back in.
Source: BOC 12 April 2023
|Date*||Target (%)||Change (%)|
|April 12, 2023||4.50||—|
|March 8, 2023||4.50||—|
|January 25, 2023||4.50||+0.25|
|December 7, 2022||4.25||+0.50|
|October 26, 2022||3.75||+0.50|
|September 7, 2022||3.25||+0.75|
|July 13, 2022||2.50||+1.00|
|June 1, 2022||1.50||+0.50|
|April 13, 2022||1.00||+0.50|
|March 2, 2022||0.50||+0.25|
|January 26, 2022||0.25||—|
|December 8, 2021||0.25||—|
*As of 2021, a change takes effect the day after its announcement.
Brian Madigan LL.B., Broker