Just a few weeks ago, realtor Colin Krieg had multiple offers on two listings.
Those were the days.
An already cooling market hit a wall on Wednesday with the Bank of Canada’s decision to raise its benchmark interest rate by a full percentage point.
“The government is really trying to scare people with these massive interest rate hikes and they’re succeeding,” said Krieg.
Within hours of the announcement, a sale fell apart right before his eyes.
“We were really close to putting the deal together,” he explained, “and the buyers effectively said ‘hold-on, with this big interest rate hike, we’re just not sure right now’.”
If the purpose of the hefty rate hike was to deliver a shock to the economy, it seems to be working.
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And now this.
“Everybody is taking a little bit of a pause and saying ‘what should I be doing and what impact is this going to have?’ he said.
But, he’s not all doom and gloom.
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