How could a Bank of Canada rate hike impact B.C.’s housing market?
Real estate experts say B.C.’s housing market is heating back after cooling off due to rising interest rates but the future is uncertain as several economists expect the Bank of Canada to hike rates again.
Home sales have rebounded and increased recently, while an overall lack of supply continues to keep prices and demand relatively high. The BC Real Estate Association's chief economist Brendon Ogmundson says he doesn’t think an incoming rate increase will stop the momentum significantly.
“We will see sales dip a little from where they are today,” he told CTV News. “But, that said, this market has been extraordinarily resilient even with rates as high as they are we’re seeing sales come back to normal levels, so it’s hard to say an extra 25 basis points is going to make that much of a difference.”
Ogmundson also says some changes are already happening in anticipation of a potential rate increase.
"?Five year fixed mortgage rates are already beginning to rise and we could see that temper some of the recovery that’s currently underway,” he said.
Two new surveys done by major banks show Canadians consider homeownership to be important, but report there are ongoing concerns aabout chieving it.
"Many Canadians recognize that homeownership could be out of reach for their children, unless they have help with a down payment," said Carissa Lucreziano, CIBC's vice-president of financial and investment advice, in a news release about its survey results.
"Being able to help your children save for a home is a great gift, however you need to be aware of how it can impact your own finances such as effectively managing your cashflow, paying down your own debt or saving for retirement."
According to BMO's survey, 72 per cent of Vancouverites feel a home is “is more out of reach compared to their parents” and 67 per cent are planning to wait until mortgage rates drop before buying.
But Ogmundson says the latest housing market stats show more buyers are back in the game.
“In April and May the market really picked up. I think there’s just a relentless amount of demand in this market and people were on the sidelines for a year and decided that was long enough.”
For those on the house hunt Ogmundson has this advice: “Don’t try to time the market. Find something that’s right for you and, crucially, that you can afford and that you are comfortable with affording long term.”
CTVNews.ca Top Stories
'My family doctor just fired me': Ontario patients frustrated with de-rostering
Dozens of Ontarians are expressing frustration in the province’s health-care system after their family doctors either dropped them as patients or threatened to after they sought urgent care elsewhere.
Suspect sought after fatal slashing in downtown Toronto
Police are searching for a suspect in a homicide investigation after a man was slashed in downtown Toronto on Sunday.
Edibles, armchairs and adapters: Here are the recalls for this week
Health Canada announced various product recalls this week, including electric adapters, armchairs, cannabis edibles and vehicle components.
Putin replaces Russian defence minister in rare cabinet shakeup
Russia’s President Vladimir Putin began a Cabinet shakeup on Sunday, proposing the replacement of Sergei Shoigu as defence minister as he begins his fifth term in office.
Wildfire near Fort McMurray more than triples overnight, several evacuation alerts remain in place
The fire burning near Fort McMurray grew from 25 hectares to 5,500 hectares over the weekend.
Canada Post cracks down on Nunavut loophole to get free Amazon Prime shipping
Amazon's paid subscription service provides free delivery for online shopping across Canada except for remote locations, the company said in an email. While customers in Iqaluit qualify for the offer, all other communities in Nunavut are excluded.
Mother's Day movies that pull at ALL the heartstrings
This Mother's Day Weekend, take a look at some of the most emotional movies inspired by moms.
WATCH Dashcam video shows terrifying near-miss on two-lane northern Ontario highway
There were some scary moments for several people on a northern Ontario highway caught on video Thursday after a chain reaction following a truck fire.
'It was violent': Police tear down U of A pro-Palestinian encampment Saturday morning
Multiple people at the protest camp torn down at the University of Alberta campus Saturday say police's actions against protesters were "violent" and "disproportionate."