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.”
RBC Economics study shows Canadian spending slowing due to debt pressures. While spending is steady, early signs of weakness coincide with a slight unemployment rate increase.https://t.co/r5amlMW8vO#mortgagenws #mortgageindustry #householddebt #economy
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 11, 2023
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.