“I should have bought then.” I can’t tell you how many times I’ve heard that over my 33 years in real estate. “Boy, I wish I would have bought during that period of time.”
Certainly, this was a quiet summer by real estate standards. Buyers largely remained on the sidelines, taking the time to enjoy the season and gauge the direction of interest rates and home prices, both of which have been less predictable in 2023.
But, deep down, I think many of us believe that this is not going to become a long-term down market. Rather, this is a short-term, ‘let’s wait and see’ moment for many buyers. And we’ve seen it time and again…once a few buyers come off the sidelines, everyone follows.
This morning, the Bank of Canada (BoC) made the decision to hold firm on rates, though it has not ruled out further rate hikes. Undoubtedly, this will further affect market behaviour. In the days when rates weren’t being bumped a half-dozen times per year, buyers would hear of potential increases and rush to purchase. Now, I’m finding that prior to a rate announcement, people wait to see how the announcement will impact prices and then they act.
If we look back to January when the key lending rate went up a quarter point, marking the 8th consecutive rate increase by the BoC, buyers re-engaged with the housing market, and we started to see price appreciation. In fact, it kickstarted a run of four consecutive months of increases before prices began tapering off slightly in June.
It’s my suspicion that this will happen again. Buyers want real estate. We’ve referenced immigration numbers many times in this monthly column…population growth alone is going to drive this market. So, this summer could represent the proverbial calm before the storm, and just another in a long line of “I should have bought then” moments.
As always, I would encourage anyone reading this to reach out to me at (416) 723-2383, or to contact a member of the Harvey Kalles sales team. We have been in business since 1957 and can offer clarity around uncertain housing markets.
