September 12 2022

Happy Monday Morning

Quick update current inventory is 13,332 up 100 to 200 units since last week sales are down 25% this is a direct correlation to the interest rate hike by the bank of Canada from 2.5% to 3.25%.

What worries me is this product that CIBC, RBC and TD has sold to the public, its a locked in variable with a trigger rate, to sum it up the banks sell a prime minus rate in a contract with the mortgage rate increasing once the Prime rate reaches a certain amount bringing the mortgagee’s payment much higher then originally paying at the start of the contract. The article in the video states that the cost has risen 153 dollars per 100k since the start of the rate increase, the average mortgage amount is around 1 million thats an increase of $1848 per month.

Lumber costs have dramatically dropped from the peak from $1686 USD to $509 USD and still falling, if you’re in the building industry or your looking to have some renovations completed at your primary residence wait until mid to end of next year.