This is more of an opinion piece than an informative article, but I am honestly concerned…

According to this article 1 in 4 Canadian homeowners may be forced to sell their house if interest rates continue to climb. The article can be found here: 1 in 4 homeowners may be forced to sell

This link is to CP24 but a simple google search will show that many other media outlets are quoting the same survey, and it is scary. Do you know why it is scary? Because the US Federal Reserve just hiked the interest rate in the US by another .75% (Read the article here) That is the most aggressive hike since 1994. It is highly probably that the Bank of Canada will follow suit on July 13.

Want to know another scary implication of continuing increases to the interest rates? Some buyers who have been saying how hard it is to get into the market, are being told by their lenders that they do not qualify anymore with the new interest rates. Some buyers will have their mortgage amounts reduced, but others will not qualify at all.

This flood of properties on the market by people who are forced to sell may push us towards a buyers’ market, or at least a more balanced market. The problem is that the people who have been saying they can’t afford a house may have just found out it is even more difficult for them. Will this force prices to come down even more? Possibly in areas that are now referred to as “Exuberant Markets”, but not all. As an example, average house prices in Hamilton remain significantly lower than they were in March while properties in Burlington seem to be rebounding. To see the statistics that support this, please visit Weekly Stats

I am keeping a close eye on things as they unfold and will keep you informed.

If you are in this situation where you are honestly worried about being forced to sell your home, or feeling like you will never be able to afford a property to call home, please give me a call or send me an email. Lets talk about your options and be prepared so you do not react out of emotion and fear. There has never been a more important time to speak with a knowledgeable real estate agent.