Mortgage Rates Are Going Up

Simon Kronenfeld: Mortgage Rates Are Going Up – Now What?

Canada’s real estate industry has always been an industry full of growth and change, with rapidly shifting trends and tumultuous changes only increasing the vitality of this market on Canada’s financial landscape. From industrial to residential, the real estate market has been at the forefront of Canada’s leading industries for decades, showing no signs of stopping or slowing down.

Simon Kronenfeld, an expert in the real estate industry, is among the leaders of Canada’s financial sectors, relying on his understanding of the nature of the country’s real estate market to stay ahead of each year as he whether the shifts in the nation’s economy.

Looking Back at 2021

As a whole, 2021 was a year marked by turbulence and unprecedented highs and lows for Canada’s real estate industry. While the effects of the pandemic continued to influence the market, supply and demand suffered the consequences, rising traffic in the industry and leading to one of the busiest recorded years for real estate in Canada’s recent memory.

While residential prices continued to rise, commercial and industrial real estate experienced increased interest as well, leading to universal pressure on the market and a much more intensive experience navigating Canada’s market of real estate. However, at the end of the year, it remained very clear that the residential real estate market was putting the most significant pressure on the industry over the course of 2021.

The State of Canada’s Housing Market in 2022

As Canada’s residential real estate market entered 2022, the effects of 2021 were still very strong, crossing the threshold into the new year with high momentum and little room for standing still or slowing down. However, despite this rapid momentum and the pressures across the country on residential real estate, mortgage rates across the country continued to remain relatively stable, albeit in high demand.

Meanwhile, new policies implemented throughout the country by the Bank of Canada have led to lower interest rates, which have in turn affected mortgage debt among Canadian households.

What to Expect Going Forward

With residential real estate trends in Canada still in full swing midway through 2022, there are a number of strong predictions that have risen among professionals about the future of the residential real estate industry and what to expect from its shifts. One of the strongest of such theories is the impending tightening of mortgage application and approval requirements and restrictions, a strategy that many believe will be instituted in order to help mitigate rising mortgage prices and nationwide financial pressure.

As such, residential real estate mortgage prices are expected to eventually reach a plateau, putting a temporary pause on the skyrocketing increase it has seen over the course of the past several years. This theory continues to inform investors and potential homeowners alike of the likelihood of a resurgence of increased demand as mortgage prices reach a more affordable middle ground than what has been the status of the market this past year.

However, the general view of the residential real estate market in Canada and its associated trends in mortgage prices is that residential real estate will undoubtedly continue to be considered a strong financial investment with many opportunities for prosperity and growth. Seasoned professionals of the industry such as Simon Kronenfeld are expecting to have more opportunities than ever to use their wisdom and experience to continue to profit and make significant and positive changes in the industry, across the country as a whole.