Cancelled listings, turning homes into rentals more common as housing market cools

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When Shannon Tebb listed her downtown Toronto loft for sale in mid\u002DJune, she did everything to make the property attractive for buyers. She hired stagers,…

But by July, she was pulling the property off the market — and not because she’d found a seller.

The fall has been attributed to interest rates, which are rising at a faster pace than some anticipated and pushing up the cost of a mortgage, and inflation, which recently hit a 39-year high. “We’re seeing a lot of sellers just not getting the price they want and so they’re like, ‘we’re going to hold off’ or ‘I don’t want to sell $50,000 lower from what my neighbour got a month ago because that’s a lot of money,”‘ said Anna Wong, a Strata sales representative.Article contentCREA found the national average home price in June fell 2% from the same month last year to $665,849 and, on a seasonally adjusted basis, was down 4% from May.

Research firm Urbanation recently reported falling vacancy rates in Toronto in the second quarter pushed up the average rent to $2,533 with a record high of $3.57 per square foot, up 5.9% in the second quarter compared with the first.

 

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