As usual the latest market stats will appear in my monthly Stilhavn newsletter. If you are not a subscriber and would like to be, please let me know. This below is my personal take on what’s happening out there.
As predicted in my Halftime Report at the end of June, the initial rounds of interest rate increases were not enough to curb inflation, so the Bank of Canada has followed up with further aggressive increases and looks likely to do so again at least one more time before the end of the year.
The sharp increase in the cost of borrowing has inevitably impacted buyer confidence and capacity. However, there is a huge disparity in how this has affected different market sectors, locations and price ranges. Smaller, more centrally located condos, which didn’t see anything like the same increases in value during the pandemic, are seeing an equally modest adjustment down. Whereas properties in outlying areas, especially those fuelled by young families leaving the city in search of more space, are having to make significant price reductions to secure a sale.
If you would like my take on how this shift has affected your property and/or neighbourhood, please don’t hesitate to reach out to me directly anytime. I would love to hear from you!
All the best,