• Claudine Montano
  • 07/19/23

Interest rate hikes have far-reaching implications for homeowners, renters, and real estate investors. High rates force would-be homebuyers to postpone real estate purchases and rent instead, while rising rates may force landlords to sell their properties. This leads to fewer units available in a rental market where demand outstrips supply.

The Bank of Canada halted interest-rate hikes from February to May, providing a short reprieve for variable-rate mortgage borrowers from rising costs. The recent increase will cause amortization periods to stretch, leading to higher monthly payments.

Vancouver and Copenhagen are experiencing growth and need more affordable housing. Vancouver is focusing on towers, while Copenhagen developers have repurposed old silos and a 160-year-old industrial brewery district called Carlsberg Byen. The Carlsberg masterplan aims to create plazas, gardens, and places for people to feel at home, recognizing the familiar urban fabric. The owner of the design studio emphasizes the importance of these spaces for the residents' well-being.

Canada's five-year bond yield retreated from 4% to 30% this week, reflecting positive inflation news. This could lead to a slight decrease in fixed rates by next week, while variable rates increased. This is good news for fixed-rate mortgage shoppers.

Right now we are seeing the upsizing millennial generation, who are buying condos as starter homes. The real estate turnaround of early 2023 favors houses over condos, leading to a growing price gap. In Canada, houses are nearly 40% more expensive than condos, and cost more than double in 14 cities, including British Columbia, Ontario, and Calgary.

So where do you think Toronto is falling and what does it mean for the renter market? 

Work With Claudine

With more than a decade of experience, Claudine Montano possesses a strong business acumen of Toronto’s constantly evolving real estate market. Claudine Montano is a Broker of Record with RE/MAX Hallmark Montano Group Realty affiliated with RE/MAX Hallmark.

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