There Is a 30-60 Day Window for Buyers to Get a New Home at A Discounted Price
Bank of Canada Increases Interest Rate
On March 2nd, 2022 the Bank of Canada increased its target for the overnight rate to 1/2%, with the Bank Rate at 3/4% and the deposit rate at 1/2%. The last time the Bank of Canada increased the policy interest rate was in 2018. The Bank is continuing its reinvestment phase, keeping its overall holdings of Government of Canada bonds on its balance sheet roughly constant until such time as it becomes appropriate to allow the size of its balance sheet to decline.The unprovoked invasion of Ukraine by Russia is a major new source of uncertainty. Prices for oil and other commodities have risen sharply. This will add to inflation around the world, and negative impacts on confidence and new supply disruptions could weigh on global growth. Financial market volatility has increased. The situation remains fluid and we are following events closely. To read more, click here.
What Sellers are Experiencing
Homes for sale that have been listed on to TRREB’s MLS® System in recent weeks have seen a major decrease in the number of offers on presentation day. There has also been a notable decline in the number of showings that a property receives and may be due to the increase of interest rates by the Bank of Canada, buyer fatigue and the uncertainty that follows the invasion of Ukraine by Russia.The Greater Toronto Area is no longer seeing 20+ offers on most homes at the moment. Some have received little to no offers which has forced many sellers to decrease their list price or terminate the listing all together. The real estate market in Toronto has shifted slightly, but this won't last long. Buyers that have been waiting to enter the market might have just found a 30-60 day gap where they can put an offer on a home with less competition.
