Rising interest rates hurt property sales and lower expectations for Christmas shopping

Rising interest rates and fears of a recession are impacting home sales and Christmas shopping plans.

A third of Canadians say high interest rates have made them think twice about buying real estate.

Thirty-three percent of Canadians say they will delay a real estate transaction or a major purchase.

That’s according to a new survey of more than 15,000 Canadians conducted by tech firm Dye & Durham.

One in ten (9%) say they have decided not to buy a home this year, and sellers are bracing themselves for shock as nearly one in five (17%) believe their home will never reach the same value than before interest rates started to rise.

Consumer spending is expected to decline as the majority of Canadians (57%) expect to spend less this holiday season than last year.

More than half of Canadians believe the country is about to enter a recession, while three in ten believe we are already in a recession.

The investigation also revealed:

  • One in ten Canadians (12%) say they will continue to rent instead of buy a home until rates come down
  • One in five (19) say they expect rising rates to mean that it will take them much longer to pay off their mortgage than originally expected, while almost one in ten (8%) expects to take on more debt to pay their current mortgage
  • Three in ten Canadians (30%) say they have used more of their savings than expected this year, while 17% have gone into debt to pay their bills
  • One-third (32%) of Canadians say they expect the Bank of Canada to raise interest rates by at least another 100 basis points (1 percentage point) before the end of the year. Worryingly, almost half (48%) say they do not believe that the interest rate hikes seen since the start of the year have been effective in curbing inflation, while more than half (53% ) believe that inflation will continue to rise over the next few years. six months.
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