The Bank of Canada (BoC) has said it will be use its monetary policy to tamp down inflation, which currently sits at a 30-year high. So far this year, the BoC has already moved forward with rising interest rates three times. In April, national home sales tumbled 12.6 per cent month-over-month.
With interest rates on the rise, it is more important than ever to get pre-approved for a mortgage. Plan ahead and stress test your budget. Some markets have shown signs of moderation, so you may not see the same frenzy that became the norm during the last two years.
Canada’s housing market cooled in April, but does this mean the housing market is in for a crash? Not exactly, says Robert Hogue, the senior economist at RBC. The Bank of Canada’s setting out to aggressively normalize its monetary policy is a game-changer for the market.
There are signs that the Canadian housing market may no longer be the red-hot housing sector we’ve become used to. Conditions seem to be stabilizing, the market is adapting to interest rates, and buyers and sellers may be rational again. Whatever happens, the next few years will be interesting!
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