In early January, I had started to notice early signs of change in Toronto’s housing market, which was balanced and rarely saw any multiple offers/bidding wars. In the Fall and more specifically in late Fall, there was certainly seasonality that played a factor, but mostly it was the impact of increasing interest rates.
It was uncertain if these trends were temporary or lasting, but two months later, it’s clearer that the market has shifted. Lower fixed mortgage rates and expectations of no more interest rate hikes by the Bank of Canada has prompted many buyers to re-enter the market. January saw a 33% increase in house sales compared to last year, while new listings has remained steady.
We are expecting to see listings pick up in the coming months, more specifically a resurgence after the Family Day long weekend.