Inflation and interest rate hikes have had \u0027a considerable cooling effect on Canadian spending\u0027 — especially in real estate, poll finds
One in three Canadians say the swift and steady rise in interest rates this year has caused them to delay making a real estate transaction or major purchase. One in 10 say they have delayed buying a home, while the same proportion expect to delay buying one in the next year.for seven months in a row and are now down 8.8 per cent from their peak in February.Article content
At the same time the steep rise in mortgage rates has cut deeply into affordability for many Canadians. With borrowing costs likely to rise further, Canadians in the survey were equally gloomy about selling, with almost one in five expecting that their home will never reach the value it did prior to the 2022 rate increases, the poll said.Article content
“The effects that the one-two punch of rising interest rates and recession worries are having on spending and real estate plans cannot be understated. The average Canadian is concerned about what lies ahead and is bracing for a recession by tightening up their spending and delaying major purchases,” Vallance said in the press release.