Rate hikes add a note of hesitation to real estate market

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The cautious mood in November follows a sombre October which saw sales in the Greater Toronto Area tumble 49.1 per cent compared with October, 2021

The average price in the GTA dipped 5.7 per cent from a year earlier to stand at $1.089-million at the end of October.

Older generations have seen their investment portfolios decline, she says, and higher interest rates make it less attractive for parents to take out a home equity line of credit on their own house in order to help their adult children. “We really have to have a good conversation about their motivation,” she says. “We have to be very sure that they’re ready to sell and they’re not just testing the market.”

Houses in higher price brackets are also selling, but a little more slowly compared with recent years, Ms. DeClute says. Pritesh Parekh, real estate agent with Century 21 Legacy Ltd., says he is encouraging prospective buyers to figure out the repercussions for their budget if mortgage rates climb higher or they face economic hard times.

He points to one client who was living in a condo unit with his family. He purchased a townhouse for the family and kept the condo as a rental property.

 

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That's what happens when the central banks print new money out of thin air. Causing this inflation. Then they jack up interest rates to 'fix' the problem they created! Should be criminal

That was the point. Keep cranking the rates up. Let the housing prices crash.

Perfectly fine!!!

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