My cousin got married this weekend at an incredible venue called Seven Ponds Farm in Summit, New York. It is a picturesque working farm surrounded by the Catskills mountains and - you guessed it - seven large ponds to swim or boat in. We spent 3 days there, eating farm-fresh meals and hanging out with family that I haven't seen in a long time. I'm back home today, trying to get back in the swing of things! See what I did there? LOL
No surprise, but inflation "surprised" to the upside in July's CPI report, coming in at 3.3%. While an increase was expected, inflation was running slightly hotter than anticipated. This news sent bond yields even higher, with the markets pricing in a roughly 90% chance of one more BOC rate hike by year-end and a 30% chance in September. This would bring the key rate to 5.25%, which is the peak expected by the market.
We are still on "recession watch", however, and once the economy shifts gears and inflation cools more predictably, we expect to see quicker cuts on the way down than we saw on the way up, as rates tend to drop quickly when the economy isn't in good shape. Expect more market volatility in the coming months.
Active listings in Ontario are starting to rise; however the market remains balanced for now. The MLS housing price index registered a 1.1% monthly increase, which is a decline from the previous 3 months. We would expect to see prices begin to fall in the coming months if current trends continue.
These are the times when opportunities present themselves. If you are in a position to buy but are worried about what the market is going to do, start searching for opportunities and make offers that work for your budget. Even if cash flow is negligible at this time, real estate is a long game. I have never met someone who has held property for 10 years or longer and regretted it.
We are in interesting times for sure!
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I'd love to hear your thoughts on this! Have a great week while working past those obstacles on your climb to success. Let's Grow Together!
Jonathan Beam
Real Estate Investor and Entrepreneur
Jonathan Beam is a real estate investor in the Niagara region who is passionate about helping you achieve financial freedom through real estate. He works with new and experienced investors to formulate a plan that fits your specific situation and provides market guidance and consultation on the best places and strategies to pursue within the Niagara Region. Book a free, half hour no obligation consultation to see how he can help you to achieve your goals. His travels are available at www.realestateandrepeat.com
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