Two years ago, COVID brought digital nomad Regan Beckett home to Toronto after five years abroad. Not wanting to relive her 20s, she planned to put down roots by purchasing a home.
“I did not think it was possible. I really thought I would be stuck in a condo when I set out. This was my pipe dream — that I would own a house,” she said. Since prices began declining in March, some buyers have been able to purchase a property that would have been beyond their means last winter. At the same time, sellers have been distressed to learn their house or condo just won’t sell for what the neighbours’ fetched weeks or months earlier.
Predictions of how the housing market will play out this fall range dramatically. Canada Mortgage and Housing Corp. is reportedly revising its forecast to a 10 to 15 per cent drop in prices by the middle of next year, from the 5 per cent it was previously anticipating. He does see a surge on the rental side of the market. In a typical September, about 28 per cent of Right at Home transactions would be leases. Last week, it was edging up to 40 per cent.
Re/Max is forecasting a 6.3 per cent drop in GTA home prices this fall, as consumers grapple with rising rates, inflation and fears of a recession, and a two- to 10 per cent drop across Ontario. Barrie and Peterborough will have some of the steepest dips, at 10 per cent and 7 per cent, respectively.
Not yet, we got another 30% to go in order to return to reality.
Interest rates will be at 10%? Home buyers market? Not likely