Persistent high rates could push indebted homeowners toward renting: report

Houses for sale in Ottawa

Prolonged elevated interest rates might force more and more Canadians towards selling their properties, according to John Pasalis, president of Realosophy Realty.

“We’re likely still going to see pressure in the rental market because even though rates may be on hold, there [are] a lot of over-leveraged home owners who will be forced to sell and enter into the rental market, at least for the short term,” Pasalis said in an interview with BNN Bloomberg.

“While we are seeing more inventory come online and pricing cooling just a bit, I think the pressures in the rental market will persist so long as rates remain high.”

Costs steadily mounting for homeowners

For Davelle Morrison, broker at Bosley Real Estate Ltd., the measure of relief that an extended freeze in the BoC rate could bring might not be enough to counteract the pain of ever-higher costs of living.

“With each month that passes you will have some people that will be forced to sell in this environment, and ultimately renters end up playing musical chairs because there is little supply for them to choose from,” Morrison told BNN Bloomberg.

Source link
Ottawa New Listings

Leave a Reply

Your email address will not be published. Required fields are marked *