Are Canadians preparing to jump back into the housing market?

Are more Canadians preparing to get involved in the housing market? After a lengthy period of rate hikes and market hesitation, it seems like many borrowers are getting themselves ready to jump back in. If you are thinking about entering the housing market in the near future, here are a couple of items you should know to help you prepare!

Housing market plans are increasing

Across the housing market, all types of borrowers are getting ready to dive back in. A recent survey from Dye & Durham Corp. looked at 1001 respondents to measure their market intentions. Eight per cent of first-time home buyers are planning to purchase their first property in the next year, compared to just four per cent from last year. 10 per cent of existing home owners are hoping to sell their current home and buy a new property, which is also double the figures from last year. Finally, eight per cent of respondents plan to buy an investment or vacation property, up from the four per cent who did in the last year.

No matter where we look, it seems more and more people are getting ready to jump into the market. Consumer confidence is certainly higher than it has been in the recent past. Of course, the Canadian market has been quite the rollercoaster ever since the pandemic. Record-low rates, skyrocketing housing prices, aggressive rate hikes, and persistent inflation have all made their mark, and it’s been tricky to keep up as a borrower. However, now seems to be the time when the market is about to heat up once again.

What about interest rates and recession fears?

Of course, we can’t forget how interest rates have been preventing people from entering the market for quite some time. After a series of rate hikes, the overnight rate is now sitting at five per cent, its highest point in many years.  Such a sharp increase in a relatively short period of time has caused many people to back away from the market and wait for things to settle. While interest rates have yet to decrease, most experts agree that the Bank of Canada is done raising rates for the foreseeable future. Inflation is subsiding, and economic activity is experiencing a slowdown. The next time the bank adjusts the overnight rate, it will likely lower it, which is why people are preparing to enter the market now. The potential of lower interest rates coming within the next year are driving many borrowers to take action.

As for a potential recession, there is reduced certainty that Canada will be hitting one. Some economists are now feeling more optimistic and are predicting we will dodge a recession. However, it is still a bit too soon to know for sure what the future holds. It’s still best to prepare for the possibility of an economic downturn.

Get in touch with a broker

If you are considering entering the housing market, your first move should be to contact a mortgage broker. Whether you are a first-time or repeat home buyer, today’s market conditions will require the guidance of a mortgage professional! We can help you determine whether you are in a good place to purchase a home right now, and how you should get started. There are lots of steps involved in the buying process, so if you think this is the right time for you, it’s best to get going as soon as you can!

If you have any questions about your mortgage, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.