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MONTHLY MARKET UPDATE — AUGUST 2023 UPDATE
s we wrap up the final days of August in the real estate world, it's no surprise that
activity has been a bit sluggish. There are several factors contributing to this slowdown that we need to consider. Firstly, the last days of summer holidays often see people prioritizing vacations and relaxation over house hunting. Secondly, families are busy preparing for the upcoming school year, which can divert their attention from the real estate market. However, the most significant reasons behind this slowdown are the recent interest rate hike and the looming threat of another increase. The impact of the last interest rate hike is beginning to manifest in the housing
market. Many homeowners have seen their mortgage rates skyrocket, in some cases, doubling from what they were previously paying. This sudden increase has put significant financial strain on families and individuals, causing them to reevaluate their housing options. At the same time, investors who have relied on rental income to cover their mortgage expenses are feeling the pinch. The government-imposed rental increase restrictions are preventing landlords from keeping up with inflation and breaking even. This dual blow to homeowners and investors alike has
2481 BEACON AVENUE SIDNEY BC V8L1X9 | 1-877-656-0911 REACHUS@HOLMESREALTY.COM | WWW.HOLMESREALTY.COM When you buy or sell a home with Holmes Realty, a portion of the commission goes in support of local charities. Over $250,000 raised!