Canadian real estate prices are back to surging after a correction that barely lasted a year. However, the momentum carrying prices higher isn’t expected to last very long after the latest Bank of Canada (BoC) rate hike. RBC, the country’s largest bank, expects rising interest rates will throttle demand at a time when more supply is finally beginning to appear. The result will be a much more balanced market, helping to calm the credit-driven price growth that re-appeared with easing central bank expectations.
I still don’t understand how it can still be so strong with these rates!
Banks are extending loan periods, allowing people who have bitten off more than they can chew to hold on a little longer.
That just kicks the can down the road.
People with more cash and great dual incomes pushing themselves as hard as they can go to buy because they’re “never going to be able to afford a place after that.”
At least that’s the anecdotes I’ve seen around me.
Bubble.