Inside The Westside
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Interest Rates. Rising interest rates continue to reduce housing demand and put downward pressure on house prices. On January 25, 2023, the Bank of Canada increased interest rates from 4.25% to 4.5% to contain elevated inflation, inflationary expectations and demand pressure in the Canadian economy. This was the eighth consecutive interest rate hike by the Bank of Canada since March 2022 (see bar graph below). The Bank of Canada is optimistic that future interest rate hikes will not be necessary to achieve its goals. If true, this should help stabilize house prices later this year.
Sales. In January 2023, twenty-five Westside houses sold, down 50% from the 5-year average (see bar graph below).
Prices. January 2023 Westside house prices (measured by the HPI Index) were down 1.7% from the previous month (see graph below).
* * * Conclusion * * *
The negative effects of high interest rates will take many months to work though the Canadian economy. Therefore, there is still significant downside risk for Westside house prices. Selling this coming Spring will probably net you more money than by waiting.
The Westside house market is jumping back to life this past week with an increase in both buyer inquiries and showings. Spring is traditionally one of the best times to sell and this year should be no exception. If you are considering making a move, call me today for an honest, professional and free valuation of your home. Let me show you how my Marketing Plan backed by solid systems can be quickly implemented to maximize the value of your home.
Thank you.
