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September 7, 2022

Rates Rise 0.75% Sept 7th

Jill who makes $100,000 per year qualified for $571,403 yesterday. Today she qualifies for $530,246 losing 7.2% of her buying power overnight.

This is not the first time Jill’s buying power has dropped. Over the last nine months she has lost over 20% of her purchasing power. Hopefully, today was the last major rate increase as predicated by Benjamin Tal of CIBC

While we can hope rates do not keep increasing, we should be preparing for the possibility. I have no doubt that many "sales" people will be shouting from the rooftops that rates are done rising and this is the buying opportunity of a life time… maybe they are even right! But that does not mean we can afford to be complacent. Rates may continue to rise, this will be the fear that freezes many potential buyers. That will make for a buying opportunity, but it is critical that you are in the right situation and target the right properties.

Values could drop, rates could rise further. If you have the fallback to weather the storm the next twelve months may be the opportunity of a lifetime.

Alternatively, if you are feeling the pinch of rising rates or are not ready to ride out the stormy times it may be best to wait.

Have questions? Need to chat?

Let's connect!

Steve Throndson

Real Estate Agent- Redline Real Estate Group


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