The traffic has slowed down and you can tell most people have ventured out of town for their summer holidays. The weather has finally warmed up and everyone is taking advantage of the great outdoors. Open house attendance has dropped off and property showings have slowed down. In real estate language, we call this “The Summer Market”.
It’s easy to see the freehold sector easing into the summer market. Listings remained unchanged except for a slight increase in the 3 million plus range. There is still some good news. Homes selling in the $700 to $1.5m range, almost half of them sold over asking!
In the condo sector the number of new listings has not increased but a surprising number of condos (35) are available in the $300-400 range and more than 50% have sold over the asking price. Good news for the first time buyers with a small budget.
The Bank of Canada interest rate hike last week could prolong the slowdown of the Toronto housing market, but economist Benjamin Tal said it is not expected to last long term. “What led to the slowdown in Vancouver was really more domestic buyers waiting to see what the foreign buyers tax will do.”
While Toronto could follow a similar path to the Vancouver market that saw a significant decline, there are other factors now at play, Tal said.
“We also see interest rates going up and the regulators are talking about introducing more measures to slow down the market” he said. “That’s why it’s possible the slowdown in Toronto will be more durable than the slowdown in Vancouver.”
HERE ARE THE TOP FIVE TRENDING STORIES OF THE WEEK:
23 Homes In B.C. For Under $300,000 (PHOTOS)
“Do you dream of having a spacious home, amazing open spaces, incredible views — at a price you can afford?”
Chinese Investors To Spend $1 Trillion On Real Estate In Next Decade: Report
“Toronto and Montreal have surpassed Vancouver as the Canadian cities that Chinese homebuyers are most interested in, according to data from Juwai, China’s largest real estate portal.”
How Will The Rise In Interest Rate Affect Us?
“The Bank of Canada had hiked the interest rate for the first time in seven years by 0.25 per cent, from 0.5 per cent to 0.75 per cent. The increase in the interest rate will have effects on various stakeholders in the Canadian economy, including consumers and businesses. It must be mentioned that the U.S. Federal Reserve also recently increased the benchmark interest rate by 25 basis points from one per cent to 1.25 per cent.”
Foreigners snap up record number of US homes
“Foreign buyers were involved in nine per cent of real estate transactions in York Region during the month after the province imposed a 15 per cent tax on home sales to non-residents, according to newly released data.”
Plunging GTA home sales lead to biggest national monthly decline since 2010
“Home sales in June posted their largest monthly drop in seven years, driven by a plunge in the Greater Toronto market, the Canadian Real Estate Association said Monday, the latest evidence that a cool-down in the housing sector is taking hold.”