Listings for houses for sale are trickling into Toronto-area neighbourhoods as real estate prices recover, but an air of restraint is settling over the market.
Mr. Kutyan listed the house with an attention-grabbing price of $1.995-million. He set a date for reviewing offers and expected the property to sell above asking because the neighbourhood has highly-ranked schools that draw families. But he points out that sellers who were holding out for a rebound in prices may not be farther ahead if they need to purchase another property because it’s likely that will have risen as well.
Ms. Cross doesn’t expect another increase to stamp out the recovery in house prices. Most buyers taking out a mortgage will likely opt for a fixed rate, and the rise may be more moderate than the increase in variable rates, she adds. New supply was still running at historically low levels in May, he says, and that in turn is likely pushing up prices more quickly than expected.
Ms. Omran says the central bank’s hike lifted borrowing costs directly for those with variable-rate mortgages but also indirectly for those taking out mortgages with fixed rates because those were also pushed higher by the bond market following the announcement.