“While sales remain about 15 per cent below the ten-year average, they are also up about 30 per cent year-over-year, which is not insignificant,” Andrew Lis, REBGV’s director of economics and data analytics said. “Looking under the hood of these figures, it’s easy to see why sales are posting such a large year-over-year percentage increase. Last July marked the point when the Bank of Canada announced their ‘super-sized’ increase to the policy rate of one full per cent, catching buyers and sellers off guard, and putting a chill on market activity at that time.”
“What’s interesting to see in the current market environment is that, while the Bank of Canada rate hike this July was only a quarter of a per cent, mortgage rates are now at the highest levels we’ve seen in Canada in over ten years,” Lis said. “Yet despite borrowing costs being even higher than last July, sales activity surpassed the levels we saw last year, which I think says a lot about the strength of demand in our market and buyers’ ability to adapt to and qualify for higher borrowing costs.”
Get the entire stats package here: REBGV July 2023 Stats Package.
Despite a recent quarter per cent hike by the Bank of Canada, mortgage rates have surged to their highest levels in over a decade, setting the stage for an intriguing market environment.
But here’s the remarkable part – sales activity has not only rebounded but skyrocketed by a remarkable 30% year-over-year!
What does this mean for you? It’s a testament to the unyielding strength of demand in our market and the exceptional ability of buyers to adapt and qualify for higher borrowing costs.
Though sales may be slightly below the ten-year average, there are tremendous opportunities waiting for savvy investors and determined homeowners!
Whether you’re a seasoned investor, first-time homebuyer, or a homeowner considering a move, understanding these market dynamics is crucial to make informed decisions in this competitive landscape.
Reach out today to schedule a personalized consultation and confidently navigate this market with us!