Mansion Global Daily: Many San Francisco Residents Are Looking to Leave, Canadian Home Prices Could Drop by 14% by Spring, and More

One-Third of U.K. Mortgage Holders Are Worried They Can’t Afford Their Repayments

One-third of British borrowers are concerned that they will no longer be able to meet their mortgage repayments, according to a survey from Butterfield Mortgages. The survey, which polled 2,000 adults in the U.K., found that rising interest rates were putting repayments out of reach for the third of respondents who now found them unaffordable. And the numbers get even more dire by age cohort, with nearly half (48%) of mortgage holders age 18 to 34 indicating that they might not be able to make repayments. PropertyWire

U.S. Builders Switch to Apartments as Rates Spook Potential House Buyers

As potential home buyers in the U.S. are given pause by rising mortgage rates, builders are responding by switching gears to multi-family home construction, including apartments, for consumers looking to rent as they ride out the elevated interest rates. According to a government report, new construction of multi-family properties, including rental apartments, grew 28% in August, reaching its highest level since 1986. Historically, rentals are safe from interest rate fluctuations, making them a safer bet for buyers and builders alike. Bloomberg

One in 10 Hong Kong Home Sellers Suffered a Loss in August

It’s a rough time to try and sell a home in Hong Kong. As demand falls amid waves of emigration and a potential prime rate hike, Hong Kong home sellers are seeing their prices take a downward turn. According to Ricacorp properties, one in 10 home sellers in Hong Kong saw a loss on their transaction in August, and there is an expectation that figure will grow in the near future. The Tsuen Wan, Kowloon Bay and Tuen Mun regions currently have the most discounted listings, while small apartments measuring between 431 and 752 square feet account for the highest proportion of discounted listings. South China Morning Post

Canadian Home Prices Could Drop by 14% by Spring

Citing higher interest rates, the Royal Bank of Canada has revised a previous prediction and is now forecasting home-price declines of 14% in the nation by spring of 2023. The RBC’s recalibration, from 12% to 14%, takes into account the elevation of a key overnight lending rate by three-quarters of a percentage point, by the Bank of Canada, on Sept. 7. “This forecast anticipates future rate hikes, so we don’t think that’s likely to change,” RBC economist Robert Hogg said. “The hike in rates has been included in this prediction. It’s not a huge change, but it reflects market conditions.”Toronto Star

Source