With financial markets roiling and house prices tumbling, investors in countries around the globe appear to have a diminished zeal for buying real estate outside of their own borders.
Even so, Canadian real estate mavens are brushing up on the temporary foreign buyers’ ban, which is set to come into effect on Jan. 1.
Experts don't expect rates to hit 4 by year-end but they see another 50 basis points coming. Bringing the BoC rate to a resting place of 3.75% till end of 2022. A fixed rate as high as 6% is likely on the table. Also, experts believe the BoC pause rate hikes in Q1 2023.
The overall inventory of homes on the market is well up from the rock-bottom levels seen earlier in the year, which is good news for anyone looking to purchase. Market for sellers has surged, demand was more than supply. Supply made a steady gain, signalig movement towards a more balanced market. Inventory increased by 68.1% compared to last year.
As borrowing costs climb
The average rent for a 1-bed in Toronto was $2,474 in September 2022. Rents for a 1-bed in Toronto increased by 27.5% yearly and 6.3% MoM. For a 2 bed, the average rent was $3,361, an increase by 27.7% yearly and 2.9% MoM. The average rent across Canada was $2,043 in September, an increase by 15.4% yearly.
More inventory came onto the market in September, to the extent that the market feels more normal. Market for sellers has surged, demand was more than supply . Market for sellers has surged, demand was more than supply. Supply made a steady gain, signaling movement toward a more balanced market.
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