The See-Saw Effect
Vancouver’s real estate market appears to be immune from the recession with home sales reaching an all-time high in recent months. In February, the Vancouver Sun reported that the average price of Metro Vancouver home was almost $663,000, above pre-recession levels. The driving force for this surge in sales was largely due to the low mortgage rates that come hand in hand with the high unemployment rates in Canada. But thanks to Canada’s relatively rapid economic recovery, banks have started to raise their interest rates, which will add significant stress to the average household debt. It makes sense to us that mortgage rates increase as the economy strengthens but it begs the question, have we really seen a decrease in unemployment?
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