Bank of Canada Holds Steady

The Bank of Canada decided to hold steady and maintain its overnight rate at 5%. This came as something of a relief to the real estate industry ahead of the fall market. There had been some speculation that interest rates might go up again. However, for now the Bank of Canada has adopted a wait and see approach. Primarily, they are waiting to see whether the rate increases to date will have an effect on inflation. There have been some signs that the job market and core prices are moderating, but overall inflation remains stubborn.

What Does it Mean For the Housing Market?

Good question! When rates paused in the spring, it was a catalyst for people to jump back in to the market. Prices increased and multiple offers and pre-emptive offers returned to the market. The mood feels less buoyant this time around. Toronto Realtors that we speak to say that buyers are now expecting rates to stay higher for longer. As a result, there is less urgency to buy.

What Does is Mean for Prices?

Nothing defies gravity like the Toronto Real Estate market. Mark Twain once said, “Reports of my death have been greatly exaggerated” and this has often been apt when talking about Toronto Real Estate.

Ultimately, like everything else, it comes down to supply and demand. It has been a long time since supply outstripped demand so it was perhaps inevitable that prices would continue to rise. Rising interest rates will almost certainly curtail demand. The question is - will rising costs put pressure on sellers and increase supply?

Is It A Good Time to Get Cash Back on Real Estate?

Another excellent question asked by ourselves to ourselves. Of course, it’s always a good time to get cash back!

How Do I Use Cash Back to Benefit From a Buyer’s Market?

We will expand on this in a future post, but here it is in short. Buying opportunities are most likely to occur when higher monthly payments force owners to sell or sellers to reduce their price. Of course, the problem for buyers is that they will also have those higher costs. However, what if you could enjoy the lower purchase price and offset the monthly costs by getting Cash Back From Toronto Realtors?

Contact us today and get put in touch with a Toronto Cash Back Realtor. And remember, we will only deal with Top 1% realtors and teams. Because no amount of cash back is worth a bad experience. Cash back from the wrong realtor could end up costing you way more in the future.