06/24/2022
๐ฃ ๐๐๐ง'๐ฆ ๐๐๐๐๐ฅ ๐ง๐๐ ๐๐๐ฅ โ "rising interest rates" does not always mean "falling prices", or at least, if you're looking at things from a long-term (strategic) perspective!
No doubt, we are experiencing an ever-changing market with rates in flux, as the Bank of Canada began normalizing its monetary policy in March, making higher rates a reality.
"๐๐ง ๐ต๐ฉ๐ฆ ๐ค๐ฐ๐ด๐ต ๐ฐ๐ง ๐ฃ๐ฐ๐ณ๐ณ๐ฐ๐ธ๐ช๐ฏ๐จ ๐ช๐ด ๐ฉ๐ช๐จ๐ฉ๐ฆ๐ณ, ๐ต๐ฉ๐ฆ๐ฏ ๐ต๐ฉ๐ฆ๐ณ๐ฆ ๐ด๐ฉ๐ฐ๐ถ๐ญ๐ฅ ๐ฃ๐ฆ ๐ญ๐ฆ๐ด๐ด ๐ฑ๐ฆ๐ฐ๐ฑ๐ญ๐ฆ ๐ฃ๐ฐ๐ณ๐ณ๐ฐ๐ธ๐ช๐ฏ๐จ ... ๐ฅ๐ฆ๐ค๐ณ๐ฆ๐ข๐ด๐ช๐ฏ๐จ ๐ฅ๐ฆ๐ฎ๐ข๐ฏ๐ฅ ๐ข๐ฏ๐ฅ ๐ข๐ฑ๐ฑ๐ญ๐บ๐ช๐ฏ๐จ ๐ฑ๐ณ๐ฆ๐ด๐ด๐ถ๐ณ๐ฆ ๐ต๐ฐ๐ธ๐ข๐ณ๐ฅ๐ด ๐ญ๐ฐ๐ธ๐ฆ๐ณ๐ช๐ฏ๐จ ๐ฑ๐ณ๐ช๐ค๐ฆ๐ด." Your way of thinking isn't completely wrong ... it makes total sense to feel that way, but historically it's not accurate โ there is not a complete inverse relationship between prices and rates.
๐๐ผ๐๐๐ผ๐บ-๐น๐ถ๐ป๐ฒ: ๐ถ๐ป๐๐ฒ๐ฟ๐ฒ๐๐ ๐ฟ๐ฎ๐๐ฒ๐ ๐๐ข ๐ฎ๐ณ๐ณ๐ฒ๐ฐ๐ ๐ฝ๐ฟ๐ถ๐ฐ๐ฒ๐, ๐ฏ๐๐ ๐ป๐ผ๐ ๐ถ๐ป ๐ฎ ๐๐ฎ๐ ๐๐ฒ ๐บ๐ถ๐ด๐ต๐ ๐ฒ๐
๐ฝ๐ฒ๐ฐ๐ โ rates tend to decelerate appreciation, especially in today's market with buyer demand outpacing seller and builder inventory.