I hope you all had an excellent weekend! We were celebrating my wife's birthday and my best friend's soon-to-be-born son. The topic of interest rates got brought up a few times. It seems like mortgage rates are on everyone's mind after last week's surprise rate hike by the Bank of Canada, increasing the overnight rate by 0.25%.
The average price of homes sold in May 2023 was $714,513, a decline of 15.6% from May 2022. The bigger news is that it marks a solid improvement off the lows in January of this year. With rates going higher still, buyer sentiment might take a hit over the summer, especially if there is another hike in July, which seems likely at this point.
It doesn't usually help to get caught up in the day-to-day news cycle. Over the next 12 months, think about how you can optimize your cash flow on any properties that you have. Can you add services that increase your income? Are there any opportunities to lower your expenses? Optimize these things to survive. If you are in the position to buy, you may find some good opportunities popping up, and if you need to sell, there's no shame in that. Optimize, survive, and thrive!
The big takeaway here is that the real estate market and lending guidelines are cyclical. While it is very hard to predict what prices might be like next month or in 6 months, if you follow the long-term trends and understand the fundamentals of money supply, immigration trends, housing supply, and all the other intricacies behind market movements, a very clear picture emerges that can help to guide your decision-making.
Have questions about your portfolio or want an outside opinion? Please select the button provided below, and I will schedule a free half-hour call with you to go over your situation! Talking to the right people can really save you money. I really believe that this is the time to expand your network and learn from those around you. I'll be in touch!
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!
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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