Inflation rates have been a stressful topic for the last little bit but most recently, for positive reason. Canada has witnessed a slowdown in its inflation rate (finally). It was reported in late February that Canada’s annual inflation rate slowed to 2.9% in January driven by lower year-over-year prices for gasoline and food. This exceeded analysts’ expectations for annual inflation to dip to 3.3% from 3.4% in December 2023.
But what does this mean for the real estate market here in Ontario? Let’s discuss and explore why it might be the opportune time to consider selling your property.
What is Inflation, and Why Does It Matter? Inflation refers to the rate at which the general level of prices for goods and services is rising. When inflation is high, the cost of living increases, and each dollar buys fewer goods and services. Conversely, low inflation or deflation means prices are relatively stable or even decreasing which helps us all with day-to-day affordability.
What’s the Link Between Inflation and Real Estate? Real Estate is often considered a hedge against inflation. When prices rise across the board due to inflation, property values typically follow suit as do interest rates. Experts are suggesting that the current slowdown in inflation could potentially lead to more stable or even decreasing interest rates in the coming months. Lower interest rates make borrowing cheaper, which can stimulate demand in the market as more buyers are enticed by favorable mortgage and financing terms. This can also support strong property values.
With slowing inflation and stabilizing interest rates on the horizon, is it a good time to sell? Given the current economic climate, now could absolutely be an advantageous time to sell your property. With home prices likely to continue to increase coupled with favorable financing conditions on the horizon, sellers may find themselves in a strong position to fetch competitive offers for their homes.
If you’re considering selling your property, look no further than Certainli Realty to guide you through the process with confidence and clarity. Plus with Certainli Realty’s Triple Choice Proposal we’ll give you 3 ways to sell your home (A Non Listed Sale, a Customized MLS Listing and a Guaranteed Cash Offer) so that you always understand all your options without ever feeling obligated. Get in touch today!