How Interest Rates and Local House Prices Dance Together
I was taking a look at something my friend Chuck Charlton posted over at Milton Daily Homes about the correlation between interest rates and home prices. It got me curious about our area here in and around Collingwood and sure enough, the pattern, while not as pronounced, is the same.
In 2016, prices in our local area have climbed on average, over $200.00 a day. The prolonged period of low rates has led to steady increases in house prices. That would suggest that as rates begin to climb, we may see more balanced conditions ahead with prices climbing more in line with economic growth versus interest rates. Interesting times lay ahead.