Canadian Real Estate Market Sees Resurgence in Sellers but Buyers Remain Cautious
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In Canada's major real estate markets, there has been a surge in sellers, but buyers are holding back due to rising interest rates. New listings increased across the country in September, with Toronto experiencing an 11% rise in new listings. Weakening resales and an expanding supply of homes for sale have significantly reduced market tensions that were seen earlier in the year. This shift has given buyers the upper hand in several cities, such as Toronto and Vancouver, leading to a slight decline in housing prices.
In Toronto, new listings have been steadily rising for six consecutive months, but high interest rates, affordability challenges, and economic uncertainty are creating obstacles for buyers. Resales dropped by 1.8% month-over-month in September, and the MLS Home Price Index (HPI) decreased by 0.8%. This has put buyers in a stronger bargaining position, and further price declines are expected in the near-term. A similar situation is unfolding in Vancouver, with new listings surpassing pre-pandemic levels, and buyers remaining cautious due to high interest rates and affordability issues, leading to a 0.4% monthly decrease in the MLS HPI.
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