Terrie’s Predictions for the Market in 2023
Rate increases will slow, prices will come down some, and professional investors will start getting antsy in Spring. Jammed up markets will start moving.
Is it time to buy?
Prices of investment properties will come down a bit, but the interest rates will continue to be a problem for profitability for a while longer. I wouldn’t worry too much about long-term profitability of rental housing, though. Here’s why. Housing affordability is decreasing across North America. Interest rate rises have priced some buyers out of the market. Even with prices adjusting downwards, higher payments have actually made it HARDER for first-time buyers to get onto the first rung of the property ladder. This will put increasing pressure on already tight rental markets.
My advice – raise capital or liquidate.
Don’t worry about taking a small price hit if you’re selling. Fill your coffers – deal season is coming! And rising rents will offset this year’s rate hikes.
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