Buyers Re-Enter the Housing Market in February
Consumers are now anticipating interest rate cuts in the near future. A growing
number of homebuyers have also come to terms with higher mortgage rates over
the last two years. To minimize higher monthly payments, some buyers have
likely saved up a larger down payment, chosen to purchase a less-expensive home
type and/or looked to a more price-friendly location in the Greater Toronto
Area.
There is now competition for
some types of properties, such as houses. Bidding wars are back. Last night,
there were 20 offers on one townhouse in the Toronto suburbs. The townhouse was
listed for 1.1 million and sold for 1.5 million.
In the
second half of the year, lower interest rates will further boost demand for
ownership housing. First-time buying activity will also be a contributing
factor, as many renters look to trade high monthly rents for a long-term
investment in which they can live and build equity.