What it Means for Renters and Homebuyers
In recent reports, housing-related expenses like mortgage interest costs, rents, and property taxes have emerged as key drivers of inflation. In fact, mortgage costs are now the top contributor to annual inflation, followed closely by rents and property taxes. For anyone navigating the housing market, these trends highlight the increasing financial pressures tied to finding and maintaining shelter.
When shelter costs are excluded, inflation was just 0.9% in October, pointing to slower economic growth in other sectors. However, the Bank of Canada’s preferred measures of inflation remain above target, reflecting the ongoing challenges in the economy.
Experts emphasize: inflation doesn’t follow a straight line and often reacts to changes in the economic environment with some delay. While this can feel overwhelming, it’s a reminder of how interconnected our housing costs are with the broader economy.
What can you do?
Whether you’re renting, buying, or planning your next move, it’s crucial to stay informed and prepared. Rising mortgage rates, increasing rents, and higher property taxes mean it’s more important than ever to plan your housing budget carefully.
If you’re considering a move or need advice on how to navigate these trends, reach out! Let’s discuss how I can help you find solutions that work for your unique situation. Visit our Resource Page for tips and forms or contact me directly for insights tailored to your needs.
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