The data from Statistics Canada showed as of January 2022, the average home price in Canada rose to a new high of $748,450, up 21% from a year earlier.
With housing inventory in short supply and demand remaining high, observers expected upward pressure on home prices to continue, but that slows with interest rates increasing.
"We have a fundamentally strong housing market that has been allowed to overheat…” wrote BMO economist Robert Kavcic. "It’s going to take higher interest rates to alter the market psychology, cool excess demand and price growth. That day is fast approaching.”
I want to add to these comments and advise my clients and future clients to lock in a mortgage rate with a pre-approval. If you are coming up for renewal, thinking of buying, do the work and secure your rate. I have a number of very happy clients because they did that. Their rates are now 1% lower or more than current rates.