Are rising interest rates helping?
I'm sure you've heard plenty about interest rates lately, and are maybe dealing with the consequences yourself. Here's some early results!
The British Columbia Real Estate Association says the sharp increase in mortgage rates is pushing the province's home sales down "a path to normalizing," although it estimates a balanced market is at least a year away.
The association has released the B.C. home sales figures for April, showing 8,939 properties changed hands last month, a decrease of 34.9 per cent from the record high set in April last year.
However, prices continue to climb, averaging $1.065 million in April, a 12.9 per cent increase over the same period in 2021.
on the bright side, although market conditions remain tight, chief economist Brendon Ogmundson says listings are "starting to accumulate" in some markets. There is however still plenty of demand and limited supply so prices are continuing to be pushed up.
"Canadian mortgages have sharply increased, surpassing four per cent for the first time in a decade," said Ogmundson."With interest rates rising, demand across B.C. is now on a path to normalizing,"