I just saw from Better dwelling that bank of Canada rate will rise 500% and will start within weeks. How do you see that rapid and large of a change impacting the market? Thanks
@@merrickvandervaart6998 I think it's important to note that the 500% increase will not happen overnight and it will gradual over the year. Not to say that a 500% increase isn't dramatic, but they should be starting with doubling the already extremely low overnight rate from 0.25% to 0.5%. Eventually by the end of the year it is expected to be at 1.5%, which it was back in mid 2018. Back then when rates were in the 1%-1.75% range, we were still in a sellers market and although prices weren't climbing at the rate they are now, they were still going pretty strong. I do think the rate hike will reduce the buyer demand (which is the main issue) but I don't think it will flip the market on it's head and balance it completely. Thanks for the comment!
Was 2021 surprising for you? Where do you think 2022 will take us?
I just saw from Better dwelling that bank of Canada rate will rise 500% and will start within weeks. How do you see that rapid and large of a change impacting the market? Thanks
@@merrickvandervaart6998 I think it's important to note that the 500% increase will not happen overnight and it will gradual over the year. Not to say that a 500% increase isn't dramatic, but they should be starting with doubling the already extremely low overnight rate from 0.25% to 0.5%. Eventually by the end of the year it is expected to be at 1.5%, which it was back in mid 2018. Back then when rates were in the 1%-1.75% range, we were still in a sellers market and although prices weren't climbing at the rate they are now, they were still going pretty strong. I do think the rate hike will reduce the buyer demand (which is the main issue) but I don't think it will flip the market on it's head and balance it completely. Thanks for the comment!