Is The Market Unstable?
Is The Market Unstable?
A few weeks ago the stock market saw its biggest weekly plunge since 2016 with the Dow Jones index falling almost 1,200 points. When stocks and bonds falter it’s only natural to wonder – how does this affect my investments? In a business report for CBC, correspondent Don Pittis took a look at how these changes are expected to affect the housing market, and by extension, you!
So how WILL it affect the housing market? As Pittis points out, home value is remarkably tough to predict, as area trends and other external factors can influence prices. He explains that a better predictor can be the presale market – homes that are bought before being built. Many buyers in this market have seen a severe drop in prices of new homes after they paid a premium. In addition, rising interest rates and the new mortgage stress-test may put off some buyers from taking the plunge.
However, even though the situation might look dire, there are other economic factors that predict a brighter future. Unemployment is low, wages are rising, and Canada is seeing lots of immigration, meaning that even despite the rising interest rates there are likely to be many new buyers and properties entering the market.
No matter what happens, don’t panic! Whether you’re buying or selling, there are ways to make the market trends work for you. A realtor can help you assess the situation and make the most out of whatever the conditions look like, whether that’s taking advantage of a still-favourable market, or knowing when to buy to get the most out of your investment. If you’re feeling the economic uncertainty, make sure to give me a call and together we’ll go over all your options!
The Bank of Canada can finally see “home” on the horizon with the latest increase of interest rates now levelling out. Governor Stephen Poloz and his deputies on the Governing Council raised the benchmark interest rate a quarter point to 1.75 percent, as expected....
The B.C. government has announced changes to the province's annual allowable rent increase formula that are expected to save many renters hundreds of dollars next year. Premier John Horgan and Housing Minister Selina Robinson announced Wednesday that they're...
A controversy was recently brought to light in the Okanagan Real Estate market - a Global News investigation found some discrepancies on the Multiple Listing Service (MLS) between listing locations and actual locations of properties. In a market like Kelowna where...