bravo festival south vmc.Is the financial crisis coming? The latest lending rate forecast from Desjardins, a Canadian financial institution, shows that interest rates on five-year fixed-rate mortgages are likely to reach 7 per cent by the end of 2022.Please Visit: bravo festival south vmc to Get Your VVIP Registration Today!
According to forecasts, by the second quarter of 2022, the interest rate on five-year fixed-rate mortgages is expected to be between 5.3% and 6.3%, rising to 5.3-7.0% in the fourth quarter, 5.30-7.15% in the first quarter of 2023, and falling to 4.85-6.75% by the end of 2023.
Although the Desjardins offers a range of interest rates, they believe that interest rates are more likely to reach the upper limit.
Although the impact of higher interest rates on house prices in Vancouver is still under discussion, prices in Toronto, another Canadian metropolis, have begun to “plummet”.
The median price of urban housing in the GTA area plummeted 22% between February 1 and April 19, according to the data.
At the same time, semi-detached and freestanding houses fell by 13.5% and 12.1%, respectively. The price of the apartment fell the least, at 6.8%.
John Pasalis, president of Leslieville real estate brokerage firm Realosophy, has been tracking weekly property sales and prices, rather than the usual monthly or annual analysis.
The market has been declining since mid-March, but in the past few weeks, sales have been lower than they were before the 2019 outbreak, he said.
Not only house prices, but also in the Toronto area, new home sales have changed: new home sales have plunged 21%, of which sales of low-rise homes have plummeted by 50%.
‘If you’re not an investor or a property speculator and you buy a house to live for a few years, the current cooling doesn’t mean anything in the long run, ‘says Pasalis. But for people who buy a house in February, “it’s going to sting a little bit.”
If you bought a house in February and bought it for the first time, and the price fell by 15% or 20%, it’s hard to swallow it, even temporarily.
For example, a bungalow in Oshawa, Greater Toronto, was listed at a price of 1.075 million a few days ago and sold quickly at a price of 1.05 million. On the surface, it was only 25000 lower than the listed price of the seller, but the house was bought by the seller at a price of 1.18 million a month ago. after deducting brokerage fees and handover fees, the actual net loss of the seller is more than 200000.
The bungalow is a newly renovated house with two separate units that can be sublet legally, of which the monthly rent for the basement unit is 2000 yuan, and the tenant has to pay 40% of the water and electricity bills, which is suitable for investment.