With prices up 4.2% over last July and days on market 10% fewer, when viewed month over month, it is clear to see there is a chill in the market since the Bank of Canada ended its conditional pause to the rate hikes in the spring.
The difference this year is that we are not simply contending with a shift in sentiment – rather, it’s a safe bet that thanks to these last two bumps and subsequent reaction from the bond markets, mortgage rates hovering at or around 6% have done more to shrink the buyer pool than wobbling consumer confidence.Article content
But as always, Toronto real estate seems to power on. Even with the undeniable shift, this market is not dead. Properly priced, meticulously presented, and thoughtfully marketed properties are still seeing action. Just last week I sold a cute-as-a-button condo in the Bay Street Corridor that had an offer within 24 hours and three more four days later. We priced it exactly in line with the comparables and still it went for a solid chunk above the asking price..I will admit that I was shocked by the level of interest. Of the 19 showings I called for feedback on, exactly none of the buyers were investors – all were buying for themselves or their family.
Even if the Bank of Canada holds in September, it’s hard to imagine we won’t continue to see investors clamouring for an off-ramp. Beyond that is anyone’s guess.