Rising Rates and Deteriorating Affordability Weigh on Housing Demand
We are pleased to share this month’s report on key market findings and analytics to help support Canada’s mortgage broker channel. We hope you enjoy the May national report – Rising Rates and Deteriorating Affordability Weigh on Housing Demand. Key market takeaways for May, 2022:
- Sudden shift in the market is creating disorderly/distressed selling that is pushing prices down faster than fundamentals would otherwise warrant.
- Ben Rabidoux, market analysts recently stated that “we won’t know the true state of the market until at least mid-summer. At that point, inventory trends will be key.“
- There’s a risk that things could be different than in prior mini downturns like 2009, 2016 in BC, and 2017 in Ontario. Rising rates could create a longer “tail” of sellers and weigh on demand for longer.
- There’s a lot at stake given how much the Canadian economy has been driven by housing and consumer spending in recent years.
- The good news (and it’s easy to lose sight of the fact that there’s still plenty of it) is that the consumer is in good shape and the labour market is solid.
As members of the Mortgage Professionals of Canada, Distinctive Advisors have partnered with analyst Ben Rabidoux, who provides MPC members with monthly and quarterly reviews of the latest housing and economic data and rate trends. He breaks down what the data means and the implications for Canadian consumers—our clients.
We’d welcome an opportunity to discuss this May national report – Rising Rates and Deteriorating Affordability Weigh on Housing Demand. We’d love to hear from you, so if you have any questions about our services, please contact our team.