Weekly Market Update Oct.31/21

Looking great! I think next spring will be insanely hot as everyone buys before interest rates increase potentially 200 basis points in the second half of 2022 and throughout 2023, according to Scotia Bank, which is predicting eight interest rate increases. At that point, the stress test will be closing in on 8%, and few people will qualify for higher mortgages, and so few will be able to afford the current prices of homes unless they're cash buyers.

I could easily see a 30% to 40% decline in housing prices starting in late 2022 and for the next few years after that, as people won't qualify for much of a mortgage, and investors will no longer see it as easy price increases, and will sell.