As interest rates have climbed, Canadian families have seized a larger share of the new housing market. According to a recent report, the proportion of homes purchased by families has significantly increased, reflecting their determination to secure housing despite rising borrowing costs.
This shift can be attributed to several factors. Higher interest rates tend to discourage speculative buyers and investors, who often rely on cheap credit to finance their purchases. With these buyers stepping back, families looking for a primary residence are finding more opportunities to buy new homes.
Moreover, families appear to be prioritizing home ownership over other financial considerations. Many are choosing to buy now rather than wait, fearing that rates and home prices could climb even higher in the future. This urgency has driven a noticeable uptick in family purchases, even as overall housing market activity has slowed.
This trend underscores the resilience and adaptability of Canadian families in the face of economic challenges. While higher rates have made mortgages more expensive, the desire for home ownership remains strong, leading families to navigate the market more strategically and capture a bigger share of new housing.
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