Happy 2021 everyone --
Moving into the new year, we are gearing up for a lot of froth in the real estate markets -- what should you be aware of?
1. Locally, the effects of extremely low interest rates are creating elevated demand. We are seeing some of the highest December activity ever, driving asset prices up.
2. Nationally, policies have been enacted to ensure money printing continues, alongside the low interest rates for at least another 2-3 years. Low interest rates do not only facilitate increased borrowing, it also encourages decreased savings (clearly a goal as demonstrated by Finance Minister Chrystia Freeland). This drives asset prices up.
3. Internationally, these policies benefit Canada -- Stimulating a weak currency in order to be attractive as both an export country, and an asset-haven for foreign investment. 2020 also saw very low immigration rates, meaning demand asks and supply shortages haven't truly been realized yet. These too, drive asset prices up.
--------
What are the implications of this? Although low interest rates have been advertised to Canadian citizens to ensure locals can afford property via low borrowing costs, in reality we will see froth in the market akin to 2016, and housing affordability will sharply decline within the year.
If you are looking to purchase a home, as an investment or for yourself, NOW is the time to act before the market takes off completely. Call or text 778-866-7762 for more infromation, or email m@mbhogal.com