Real Estate Market Transformations: Insights and Implications for Canadian Investors and Consumers amid U.S. Interest Rate Adjustments

Abstract

The world is currently battling the economic costs of the high U.S. dollar interest rate since the cost of living has increased to an unaffordable level for most households, and the real estate market is one of the casualties. Therefore, it is critical to establish the options that real estate investors have that they could consider generating more revenue when the housing market proves unprofitable. The paper aims at assessing how the U.S. dollar interest rate hikes affects the real estate market. The study indicates that the future housing prices are relatively unpredictable; they could either increase significantly, increase by a small margin, or remain the same. In this regard, it is critical to advise real estate investors to venture into other investments where the rise in the U.S. dollar interest rates promises optimal gains, given that the housing market may not be so lucrative.