The crystal ball is not always ‘crystal clear’ when it comes to predicting the direction of the real estate market. Having said that - there are, however, some clear signs that soothsayers and pundits use to predict future direction for the real estate market.
One of the most important considerations is bond rates. Put simply, when the 5-year bond yield rises invariably the mortgage rates are affected. At the close of July the Government of Canada 5-year bond yield closed at a 16-year high. As this yield is a key influence on mortgage rates, it is likely that interest costs are about to head that direction too. If interest rates rise, affected by the bond yield surge, it will likely slow home prices and sales further as we move through the next few months.
If this leads you to question ‘is this a good time to buy or sell’ give me a call and I would be happy to meet. In every market and in every situation, opportunities are always there! Coffee, tea or your favourite beverage will be on me!