Toronto’s Sluggish Summer Housing Market
In downtown Toronto, nearly 3,000 condos are listed for sale, marking a record high. Realtor Ana Edinger notes that the summer housing market is unusually slow, with properties lingering on the market longer than in previous years. The current slump is a stark contrast to two years ago, when bidding wars and quick sales were common.
Impact of High Interest Rates
High interest rates are making condo units less affordable, forcing sellers to adjust their expectations. While sellers previously enjoyed quick sales and higher prices, they are now facing a challenging market where even reduced prices do not guarantee a sale.
Regional Variations and Market Shifts
The downturn is particularly severe in expensive cities like Toronto and Vancouver. Despite a recent interest rate cut by the Central Bank, buyer activity remains low. However, regions like the Prairies and Atlantic Canada are experiencing a boost as Canadians leave Ontario and BC, leading to rising prices and better affordability in these areas.
Future Projections
Economists anticipate another interest rate cut by mid-2024, which could potentially ease the burden on home buyers. Nonetheless, the Canadian Real Estate Association has downgraded its forecast for the year, predicting a subdued outlook for home sales and prices.
