Real Estate News

Toronto Housing Sales Are Slowing Down, But Not When It Comes To Homes Over $1.5 million

The pandemic housing boom seems to be over in Canada. Recent sales data from the large housing markets suggests a slowdown in sales relative to last year. Though housing prices are still rising, a slowdown in demand is expected to moderate that price growth going forward.

Homebuyers and sellers are watching the market with increased anxiety. If prices fall, buyers are concerned about being stuck with a value-losing asset. On the other hand, sellers are hesitant to list properties, worrying it may take longer to sell and they may not get top dollar. With the motivations of buyers and sellers in flux, housing prices might become a victim.

The consensus among the pundits is that rising mortgage rates have increased the cost of borrowing, which has consequently deterred buyers. Moreover, as the Bank of Canada is expected to hike interest rates further, mortgage costs are expected to follow the same trajectory. Interestingly, such rapid yet expected hikes in interest rates could have differing effects on market participants.

Continue to read on: FINANCIAL POST

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