Wednesday’s 100 basis point hike to the overnight interest rate brings the total increases this year to 2.25%. This will understandably have a profound impact on housing prices.
The monthly payments to purchase the same home in January compared to today are up $1,100, or 52%. The rising rates have already seen around a 20% decline in prices in the GTA, and here in Vancouver, around 11%.
The full effects of the recent rate hike have yet to be felt. Plus, current indications are that rates will be raised to 3.75% by year end, adding another 1.25% before the Bank of Canada levels off.
The word Recession has become predominant recently, though the robust job market is doing its best to hold it at bay. June produced the lowest employment rate in recorded history, coming in under 5% for the first time ever.
There is no question property prices are going to go lower in Vancouver – current estimates point to 15% HPI. With the cost of borrowing up, this isn’t making homes more affordable, as monthly payments for the lower price home are as high as the higher priced home with lower rates. Cash buyers are the real winners here.
_________________________________
🏡 Visit our website to see active listings and valuable Real Estate information 🏡
→ The Vancouver Life: https://bit.ly/3yN25V7
🏦 Investors 🏦
Join our Investors Group with over 6,600 Members
→ Facebook Group for Investors: https://bit.ly/3CQ7hu3
💥 Follow us on Social Media 💥
→ Instagram: https://bit.ly/3jSkRo1
→ Facebook: https://bit.ly/3g05bxK
→ Twitter: https://bit.ly/3xMGFpZ
_________________________________
The Vancouver Life Real Estate Group are licensed Real Estate Agents at eXp Realty Vancouver / eXp Realty Canada:
🏆 Top 3% Agents 2019, 2020, 2021
🏆 Medallion Club Members 2019, 2020, 2021
🏆 Over $250,000,000 in sales
_________________________________
👩🏼💼 Are You A Real Estate Agent? 👨🏼💼
Book a 1-on-1 with us to learn how we help agents DOUBLE their business → https://bit.ly/level10agent
This is a taste of what our Coaching Team can offer you, free of charge!
🆓 Google Ads coaching or discounted management
🆓 Level 10 Agent + SIMS Coaching Systems & coaching calls every week
🆓 YouTube, social media & online lead generation coaching
🆓 Access to an online lead generation program
🆓 Access to online lead conversion program
🆓 1-Page business plan created with you by our Coaching team
🆓 90-day Coaching new agent training program
🆓 Your Assistants trained & hired with SIMS assistant team
🆓 Your Inside Sales Agents trained & hired with SIMS powerhouse ISA team
🆓 Access to our private Facebook mastermind Group
🆓 Access to 1-1 when you need us for support
🆓 Access to kvCORE, 40+ weekly training calls, stock, revenue share and more…
👉 Learn more at https://bit.ly/level10agent
_________________________________