Quote:
Originally Posted by TheHonestMaple
The interest rate hikes will crush demand, by design. You can actually already see the impending slowdown in the current price for copper, which is a primary indicator for future industrial growth. It's used in pretty much everything, especially building construction.
There will definitely be a slowdown in condo construction in the next two years, it's what the BoC wants (lower demand for all goods), and they will get it.
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I understand how this will affect demand, what I am trying to say is that the supply constraints which exist, and the factors which have driven location-based demand, still exist and will continue to. The near term will certainly see a slowdown, that much is clear. It is undoubtedly needed as well, considering the dire state of the real estate market and the economy at large. I am curious as to what things will look like in the aftermath; how high demand will still be, where it will be, and to what degree current projects will push forward or stall out. It might be just me, but it feels like we have seen a flurry of new proposals in the last few months, moreso than usual. Does this indicate funding that has been lined up? Or, perhaps it’s just bad timing from developers. As you’ve suggested, With rising rates, who is really going to consider buying a new condo right now for 2024 with 5%+ interest?