Pamela Dass
In my 17-plus years as a real estate broker, it is my first experience seeing the upheavals that the market has been going through in 2022 because of the effects of the Covid-19 pandemic.
The first half of the year turned out to be that of a sellers’ market which because of the low inventories triggered multiple offers on available properties in many cases with purchase prices way above asking price.
This overflow of buyers during this period (a time when inventory was the lowest ever) was also the result of the Bank of Canada prime interest rate lurking at its absolute minimum low (Prime at 2.45% – March 31, 2022.)
In my previous career as a banker of 30 years, I headed the Bank of Montreal Mortgage Mortgage Accounting Department and one of my responsibilities was setting the Mortgage Interest Rate Table for the Mortgage Portfolio, which were rolled out for branches to work with when processing qualifications for customers planning to purchase.
Prior to the Covid-19 pandemic, mortgage interest rates were an average of 5-6%; we are now at 5.19% on a 5-year fixed term.
With the recent hype from the hike with the increase of mortgage interest rates, buyers are afraid of making a move and are waiting for interest rates to stabilize, before venturing in the market.
However, I feel confident saying what we experienced in the earlier in the year is now history and we are now in a normal market with the prime rate at 6.45%.
Also we are now experiencing a swing into a buyers’ market as an increasing number of properties become available for buyers to select from.
But for those looking to go into the real estate market either to buy or sell, there’s still a lot to be deciphered.
I look forward to 2023 when I will restart my Free Seminars to providing information to help both buyers and sellers with their plans to become a homeowner or profiting from real estate.
As we go into this holiday season, I want to say Thank you to the community and to extend Best Wishes to you and your family.
Merry Christmas! May the New Year 2023 Be A Wonderful Year.
