2022 vs 2023 Rates & Home Prices

April 18, 2023 | Posted by: Barb Pinsent - Trusted Fort McMurray Mortgage Associate

Interest Rate Update

I have some good news and…some good news! Yes, you read that right. On April 12th the Bank of Canada decided to hold the Overnight Rate at 4.50%, which means we won’t see a change in Prime Rate. Variable rate clients are thankful for the last two rate holds, which means no change to their principal and interest payments. What is the other good news? Fixed rates are coming down! With that said, we think it’s a great time to compare interest rates & home prices from March 2022 and March 2023. 

This time last year ????️

The average price for a single family home in March 2022 Canada was $794,957. Many Fort McMurray home buyers were just starting to get used to the fact that interest rates were on the rise. The going rate for a 5-year fixed insured mortgage was 3.84% at the end of March 2022. By the end of November 2022 rates were as high as 5.29% for that same mortgage.

What’s going on now? ????

The Canadian Real Estate Association just released that the new average price for that same home now, March 2023, is $686,371 (13.7% lower than last year). Just a few short months after the peak in interest rates,  many lenders are now offering rates as low as 4.54%* for a 5-year fixed insured mortgage (as of April 15th, 2023). *Rates subject to approval and change without notice.

What does this all mean?

Have you ever heard of the saying “Marry the house, date the rate.”? This means that the good deal you get on a purchase price is forever and interest rates will vary. In short, prices hit a low in January and are now increasing. Interest rates hit a high in November and are now decreasing. With that said, it may be the perfect time to enter the housing market in Fort McMurray. 

Let’s break it down ✍️

Would you believe me if I said it was $270/m cheaper to buy the same house today, than it was this time last year? Here is a comparison of purchasing a single family home in Canada March 2022 vs. 2023.

*Based on insurable mortgage rates as of March 28th, 2022 **Based on insurable mortgage rates as of April 15th, 2023
Note: Table & calculations for illustrative purposes only. Rates are subject to change without notice. This is not a commitment to lend, approval or pre-approval.

Can You Believe The Savings?

When many people think about low interest rates, they think about the Pandemic. Purchase prices soared and interest rates plummeted. If there is one thing we learnt over the last few years is that the Real Estate Market is impossible to predict, though many agree that we may never see interest rates that low again.

Is Now A Good Time To Buy in Fort McMurray?
Many homebuyers have been waiting for real estate prices and interest rates to come down. January 2023 may have been the bottom of that downward trend with the actual (not seasonally adjusted) average price being $612,204 in Canada. Interest rates continue to go up and down, though many economists predict them to hold steady throughout 2023 or decrease by the end of the year.

If you were waiting for a sign to enter the housing market, this is it. ????

By Barb Pinsent

Mortgage Broker, The Mortgage Centre Elite

For Fort McMurray mortgage inquiries, please contact Barb Pinsent
The Mortgage Centre Elite
C. 780-370-1490
W. www.barbpinsent.com
E. barb@barbpinsent.com

Free Purchase Calculator: CLICK HERE 

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