How Recent Events Affect the Market

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As you’re no doubt aware by now, the world at large is facing some turbulence that is sure to impact political and economic spheres around the globe. Today we’ll highlight four key changes we’re seeing in the marketplace and explain how that may affect you and your property: 1. Rising interest rates. We’ve all seen that the Bank of Canada recently raised interest rates, which affects many first-time homebuyers as they look to enter this already challenging real estate market. If high prices and frequent bidding wars weren’t enough, higher rates make it harder for them to afford homes. The Bank of Canada has forecasted several consecutive rate hikes this year, so we’ll have to keep an eye on things as the year progresses. 2. The global economy. With the situation escalating in Russia and Ukraine, many buyers and sellers have been holding back. They’re not sure if things will escalate into a full-blown world war or de-escalate and calm down a bit.

"Overall, the economy is still very robust."

3. Fewer homes on the market. Of course, buyers’ and sellers’ hesitance contributes to the steady decrease in the supply of homes, making things even more challenging for buyers. 4. High inflation. Rising inflation means that your money is worth less and less in the bank. As a result, more investors are buying up real estate as a way for them to benefit from the appreciation of their properties. Overall, the economy is still very robust. If you have any questions about the market or how conditions affect your real estate plans, don’t hesitate to reach out to us by phone or email. We’d love to hear from you.