I had a meeting today with Tom Mattice, a real estate agent with Royal Lepage Action Realty here in Brantford. Tom told me that since the beginning of September he has seen a definite softening of the real estate market here in Brantford. According to Tom, “the last three years have been booming, and we are now starting to return to more normal activity, like we had five years ago in Brantford.”
The real estate market has not increased as much in Brantford as it has in areas like Toronto, so Brantford’s real estate market will “soften”, but probably not experience significant declines.
However, Tom pointed out that CMHC is projecting that mortgage interest rates will increase over the next year from around 5.5% to 7.25%, which mathematically is an increase of over 30%! That means if you are paying $1,000 per month in mortgage interest now, that could increase to $1,300 per month when you renew your mortgage next year.
Since most people have not had 30% pay increases this year, that will take a big bite out of everyone’s budgets, and that doesn’t include increases in property taxes, heat, hydro and other costs.
If interest rates continue to increase, and house prices in Brantford do fall, it is possible that some people will be forced to sell their homes at a loss, which may lead to an increase in the bankruptcy rate in Brantford.
Tom’s advice? If you have a lot of debt and you are thinking about selling your house to use the equity to repay some of your debts, now is probably the time to sell. If you wait until next year, it’s possible that house prices will be lower.
If you live in the Brantford area and want an independent evaluation of the value of your home, or if you are thinking of buying or selling a home, Tom Mattice can be reached at his Brantford office at (519) 753-7311.
If you have more debt than you can handle, and want advice on strategies to deal with your debt, please call our Brantford office at (519) 770-4440 or e-mail us a question and we would be happy to set up a no-charge initial consultation.
Filed as: personal bankruptcy, bankruptcy Brantford, bankruptcy Ontario
