Real estate news : Perspective on the first quarter of 2023
Is cash really still king? Is the money in my savings account still safe? Do I need to hide my money under my mattress? All jokes aside, the first quarter of 2023 comes to an end and it brings us quite a curveball. Who would have predicted that some mid size banks south of the border would have a liquidity crisis and all is a span of a week.
We have seen consistent growth in the number of real estate transactions through the first 3 months of the year, edging higher and higher from the lows of the 2022 fall season. Consumer confidence has stabilized and started to grow with the Canadian central bank forecasting a hold on interest rates hikes. The potential banking liquidity crisis may in turn add uncertainty back to the markets.
Will equity be an issue leaving consumers unable to access loans? Or will central banks be forced to lower interest rates to cover financial institutions’ wrong decisions on long term bonds? April will definitely be an interesting time as governments continue to be keen on lowering inflation without throwing the economy into a recession. Much like 2008 stringent and hefty financial regulations surrounding banking has so far saved Canadians from the eye of this potential storm.
We believe that the second quarter of 2023 will continue to see a steady rise in real estate transactions however with prices continuing to flatline, with an outside change of price growth if central banks are forced to lower interstate rates faster than forecasted. We are firmly in our new reality and we expect this environment to continue to the end of 2023.
For more information questions or tips feel free to contact us at the Lacasse Shapcott team
Article written by Kyle Shapcott, Real Estate Broker, Équipe Lacasse Shapcott, RE/MAX du Cartier.