Page 38 - Sports Energy News, Cornwall, Issue No 120

38 Issue #120 January 2023 www.sportsenergynews.com

Neighbourly
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Local Pr
Neighbourly Advice From Our Local Professionals
Advice Fr
get a reprieve when it came to Canadian Rate Movements
By Brian Johnston real estate prices, which fell after reaching The foundation for variable interest rates
Mortgage Specialist is the Bank of Canada’s overnight rate and
an all-time high earlier in the year. As of
November, the average unadjusted price prime rate, which both finished the year
YEAR IN REVIEW fell to $632,802, down 12% year-over-year 400 basis points higher than where they
As we turn the page on yet another and 22.5% below February’s price peak. began.
tumultuous year headlined by rising On the other hand, borrowers had to deal Meanwhile, the most important
interest rates and falling home prices, we with soaring interest rates, which slowed benchmark for fixed-rate pricing—the
wanted to take a look back at some of the mortgage borrowing as non-mortgage debt 5-year government bond—ended the year
top mortgage-related stories of 2022 and grew. up over 200 basis points, which resulted
how mortgage rates fared. Here’s an overview of some of the year’s in significantly higher fixed mortgage rates
Consumers grappled with rising prices in nearly all aspects of rate movements and mortgage-related by year-end.
the economy thanks to soaring inflation. But new homebuyers did stock performance. Continued on page 39

in December, the market still remained strong slower months for listings and there are still
By Michael VanderMeer even though previous months were starting to a lot of buyers out there, so these may end
Real Estate Agent show signs that the market was balancing out. up being the better months for sellers. The
In December there were only twenty-six sales rest of the year should start balancing as
WHAT DOES CORNWALL’s MARKET of single-family homes in the city, but we are more listings hit the market and as supply
HAVE IN STORE FOR 2023? still seeing approximately 20% of properties vs demand ends up leveling out, we should
Truth is that it is a little too soon to tell - sell over asking, and about 25% of the sales end up with a balanced market. One thing I
I think the first three or four months of this were... not where cash offers (no conditions). am pretty sure that we will not see in 2023
year will give us a better idea for the rest of These results are for single family homes is the drastic increase in house pricing which
the year and overall, I think the market will in the city only for the month of December. we witnessed in 2020, 2021, & 2022. As the
continue to balance out. Although sales slowed down for the holidays Typically, January, February, and March are market becomes balanced prices will stabilize.

strategy and the value and purpose of happens over and over again as part of
Max Ming P.Eng. CFP ® asset allocation to achieve your families’ sustainable economic growth and the
Financial Planner
financial goals. business cycle. All things: economies,
business, securities markets, and even
Happy New Year, we wish everyone Despite everything you might be
health and happiness in 2023! hearing concerning a possible recession us, breath in and breath out – expand and
contract. It’s the way it is. In fact, it’s the
There is no doubt that the last 12-15 in 2023, we aren’t usually aware that we very contraction in the market that allows
months have tested investors patience. have had one until it is almost over, since the expansion to occur.
Many factors – inflation, rising interest it is based on historical data and takes What 2022 finally highlighted again is
rates, and choppy equity markets are time to calculate.
the value and purpose of an investment
seemingly converging all at once, which However, a recession has never meant plan. From 2020-2022, the need for a
has led to the abundance of recession headlines for 2023. In the end of the world for successful plan was dismissed by the broad investor
times like these, questions can arise about your investment investing, and it is something that Continued on page 39

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