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The BOC dropped interest rates on Wednesday by 25 basis points. That brings the best variable rate mortgages down to 3.79% and will likely bring them down to 3.54% after the next meeting in 6 weeks.  I expect this will be an inflection point in our real estate market…

Will this mean that everything will come roaring back?  I don’t expect that.  We are currently in a buyer’s market for almost all housing types across the entire GTA.  There are a few exceptions and yes, great properties in good neighbourhoods always sell well.  I do believe that this will start us on a slow march on the upward slope that will bring us back to a balanced market and then ultimately to a Seller’s market.  Yes, we will be back to a Seller’s market eventually since we are currently not building any new low-rise homes or condos in the GTA.

August home sales, as reported by TRREB, were up on a year-over-year basis. To put that into context, last August was the lowest sales month in about 40 years.  We are better than that; however, still at multi-year lows for sales.

Buyers currently have the best market to purchase a home in since the early 90’s.  That was 30 years ago.  For many people, this will be the best market to purchase a home in during their homebuying life. 

Affordability is increasing on two fronts.  One with lower interest rates and the other with lower selling prices.  As Buyers wake up to this, more and more will start to decide to move.

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