Will Squamish Real Estate Market Crash, not likely
- May 31, 2022, 4:46 a.m.
According to Scotiabank vice president of Capital Markets Economics; Derek Holt, there remains a little risk of a crash in the housing market across Canada. Especially in a small market like Squamish. Speaking to mortgage professionals, he said that while mortgage rates are starting to increase to combat inflation, most buyers are still seeing below historic “average rates”. “The large increase in cash balances that occurred over the pandemic combined with the record-high amount of home equity on Canadian balance sheets paints a picture of a household sector that can manage the rate shock we’re likely to get,” he said.
Holt said that predictions in recent decades that the market would plummet had proven wide of the mark, with little indication that that scenario would come to pass in the near future. Holt said that rate increases were unlikely to precipitate an “incremental shock” compared to what Canadians already had to qualify for under the stress test, with those hikes set to be measured and timely over the next quarter. “We suffer temporary setbacks and it always seems to rebound. The way I look at it is: housing may have a bit of a drag on GDP growth going forward, but not a crash scenario by any means.” The announcement that rates would begin rising in mid-2022 was seen to reflect its optimism on Canada’s economic outlook and awareness, at the same time, of the continuing risk posed by inflation. “I think you need to get on with it as opposed to assuming inflation will magically disappear,” he said. “The whole point of tightening monetary policy is to be pragmatic. I don’t think we should automatically assume that it’s going to pull the rug out from beneath the housing market and create a more dire scenario.” Holt described the Bank’s statement as a “reasonably balanced” message and one that would allow it to take a flexible approach next year depending on the economic landscape. With the 2022 launch of Squamish.RealEstate, we hope to engage buyers and sellers with content to help them better understand Squamish property values and potential opportunities. As well, we intend to introduce modern real estate services and technology to help clients save time and money. For more information, browse our site or contact us. Sean Brawley 604-849-0500 RE/MAX Sea To Sky Real Estate Personal Real Estate Corp.