One mortgage broker says there are now more opportunities in Toronto’s housing market for homebuyers compared to recent months.
In a statement to BNNBloomberg.ca Wednesday, Leah Zlatkin, licensed mortgage broker and LowestRates.ca expert, said that after the Bank of Canada lowered its policy rate in June by 25 basis points, “we saw a flood of new listings enter the market.”
“But persistently high mortgage rates mean buyers are biding their time and aren’t in a hurry to purchase. As a result, we’re seeing the balance tip in favour of buyers for the first time in recent memory,” Zlatkin said.
“While rates remain high, those that can afford a mortgage at these rates will find more opportunity to purchase than in the recent past.”
Zlatkin also noted that while mortgage rates are currently higher than they would be following additional rate cuts, home prices are likely to be lower now than they will be going forward.
“While individual cases may vary, for some it could be worth it to take a higher mortgage rate with a lower house price and take advantage of the current glut of listings to get into the market.”
On Thursday, the Toronto Regional Real Estate Board (TRREB) said home sales in June fell 16.4 per cent from the previous year as many buyers elected to stay on the sidelines.
TRREB said that 6,213 homes in the Greater Toronto Area changed hands in June, lower than the 7,429 sold a year earlier.
The Bank of Canada moved to lower its key policy rate on June 5 by 25 basis points to 4.75 per cent. According to Ipsos polling for TRREB, cumulative rate cuts of 100 basis points would be needed to meaningfully bring home sales higher.
With files from The Canadian Press.