Is the Real Estate Frenzy Finally Slowing Down? Signs are Emerging.
There are signs cropping up that the intense level of housing imbalance seen throughout the pandemic may finally be reaching a turning point.
The latest indication came from Equifax Canada, which reported an annualized 8.1% decline in new mortgage origination volume in the fourth quarter. The total value of those originations was still up a marginal 1.2%, but well off the 27% year-over-year growth seen in Q3.
“There’s no question that sky-rocketing house prices have decreased housing affordability across all segments,” Rebecca Oakes, AVP of Advanced Analytics at Equifax Canada, said in a release. “In addition to high house prices, lenders have also started to move interest rates up in anticipation of rate rises from the Bank of Canada. This could also be limiting the purchasing capacity of many consumers.”
Article Written By: Steve Huebl
Original Article Posted on: March 7, 2022