The malaise hanging over the Toronto-area real estate market appears set to linger into August, but signs are pointing to renewed vigour in the fall, according to one industry veteran.
Posted rates for mortgages with a popular three-year term, for example, were recently hovering around 6.99 per cent. Olivia Cross, North America economist at Capital Economics, says the shift in tone indicates that policy makers are becoming almost as concerned by the prospect of the rate of inflation falling below their target of 2 per cent as coming in above.Some aspiring home buyers appear to be holding out until they see the lower rates Bay Street is predicting become a reality.
A house in the family-friendly Toronto neighbourhood of Moore Park, for example, will have no problem selling if the asking price is around the $3-million mark or below.“Depending on the market you’re in, it’s either balanced or a buyer’s market.” Economist Rebekah Young, a vice-president at Bank of Nova Scotia, says Canadians are grappling with a sense of discontent about almost everything these days.
But Ms. Young cautions that it’s not clear today’s downbeat attitude is warranted. With consumers feeling gloomy and business leaders reporting an uncertain outlook, Ms. Young says a sentiment check is in order – otherwise the pessimism can become self-fulfilling.