Interest Rate Update 📈 Hey there, homeowners and aspiring buyers! I've got some fantastic news to share. Drumroll, please! 🥁 On April 12th, the Bank of Canada decided to hold the Overnight Rate at 4.50%. That means no change in Prime Rate, which is great news for variable rate clients as it means no change to their principal and interest payments. But wait, there's more good news! Fixed rates are coming down! Now, let's dive into a comparison of interest rates and home prices from March 2022 to March 2023.
This time last year 🗓️ In March 2022, the average price for a single-family home in Canada was $794,957. Back then, homebuyers were just getting used to the fact that interest rates were on the rise. By the end of November 2022, rates had climbed as high as 5.29% for a 5-year fixed-insured mortgage.
What's happening now? 👇 Hold onto your hats! According to the Canadian Real Estate Association, the average price for that same home in March 2023 is now $686,371. That's a whopping 13.7% lower than last year! And here's the cherry on top: many lenders are currently offering rates as low as 4.54%* for a 5-year fixed-insured mortgage (as of April 15th, 2023).
What does it all mean? 🤔 Here's the scoop: the great deal you can get on a purchase price is here to stay, but interest rates will continue to fluctuate. In summary, prices hit a low in January and are now on the rise, while interest rates peaked in November and are now on the decline. That makes it an opportune time to enter the Canadian housing market.
Let's break it down ✍️ Prepare to be amazed! Can you believe that buying the same house today is $270/month cheaper than it was this time last year? Check out the comparison of purchasing a single-family home in Canada in March 2022 vs. 2023:
Can You Believe The Savings? It's truly remarkable! 🤯✨
When I reflect on low interest rates, my mind naturally wanders back to the Pandemic. During that time, we witnessed real estate prices soaring while interest rates took a breathtaking plunge. It's undeniable that the Real Estate Market is an enigma, impossible to predict with absolute certainty. However, there is a glimmer of hope in my heart that we might see lower rates once again in the future. 🙏🏡
Now, let's address the question that has been on many homebuyers' minds: Is now a good time to buy? 🤔 After patiently waiting for real estate prices and interest rates to come down, we may have reached a turning point in January 2023. The actual average price in Canada, without seasonal adjustments, stood at an enticing $612,204. It's worth noting that interest rates have been fluctuating, leaving us in a state of anticipation. Many economists, however, project that rates will remain steady throughout 2023 or even decrease toward the end of the year. 📉🏠
If you've been eagerly awaiting a sign to make your move into the housing market, this is it. The stars seem to align in your favour, beckoning you to take action and seize the opportunity before it fades away. Trust your instincts, and let's embark on this exciting journey together. 🔮💫
**rates are always subject to change**
Emily Miszk Mortgage Broker, BRX MORTGAGE FSRA 13463
For mortgage inquiries, please contact Emily Miszk Port Credit Mortgages C. 416-669-6322 W. portcreditmortgages.com E. email@example.com
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