The Bank of Canada interest increase has put the real estate market and some sellers on their toes, worried that they missed an insane chance to get 10-15% above the true value of their home. We're seeing that a lot of these sellers aren't as active, giving the GTA a little bit of a supply issue but the interest rate hike has taken some buyers out of the market as well, really balancing out the dynamic of the Toronto Real Estate Market.
Buyers who previously had a shot at buying a $700-800k condo may have been priced out with the new rates as it would drop their approval down to $550-600k and those that were prancing above the million mark can comfortably put 20% down on a condo now worth less than that. Buyers are now seeing that many sellers are going dry on their offer date strategy and coming back with a higher list price and openly showing what they're hoping for their property, giving the buyer pool more comfort and also more options.
Though the prices are dropping, it is coming back to the true value of the current time, instead of having to pay next year's inflated price. With property values becoming a little more manageable, and the market not being as aggressive, this is the perfect time for any buyer with an adequate downpayment to get their feet wet and land their dream property!
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