There has been much speculation about the likelihood of an interest rate hike from the Bank of Canada and what it could do to housing market.
Some economists are predicting an interest rate hike in the middle of the year or sooner. Others, like senior economist Jean-Francois Perrault, is forecasting ‘…as early as next week and that it would be the first of multiple interest rate hikes over the course of the year with rates hitting two per cent by the end of 2022…’.
TD Bank economists wrote. “…there is a real risk that Canadian house prices will see another leg up given the still-low interest rate environment. Though the BoC has stated that housing risks are more the prerogative of the federal government, it knows that keeping interest rates low for too long increases financial stability risks…”.
Inflation and record high housing prices are putting pressure on the Bank of Canada to act!
Will higher interest rates slow the rate of house price increase?
Just how much has West Vancouver property prices accelerated?
Check out the infographics below for the trend of West Vancouver house and apartment HPI yearly average since 2005: