High interest rates may be 'forcing the hand' of some homeowners to sell, while simultaneously keeping prospective purchasers out of the market.
High interest rates may be "forcing the hand" of some homeowners to sell, while simultaneously keeping prospective purchasers out of the market.After starting the year at a two-decade low, supply has steadily risen across Canada over the last several months. While the influx of new listings has helped bring more balance to the market, economists speculate that the underlying cause may be troubling.
"The significant and broad-based unwinding of supply tightness in recent months points to a considerable shift in market sentiment," Marc Desormeaux, Principal Economist at Desjardins,"This suggests that many homeowners are increasingly struggling under the weight of sharply higher borrowing costs." Sales have been on the decline for four straight months, most recently dropping 4.1% from July to August. Although this has brought the national sales-to-new-listings ratio to a balanced 56.2%, Desormeaux cautions that there will not be an "imminent" improvement in affordability.this month, but has said further increases are still a possibility as inflation remains high. Desormeaux doesn’t expect rate cuts to begin until at least Q1 2024., which found that 3.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New York Cracks Down on Crypto Coin Listings With Fresh GuidanceCrypto firms in New York are facing stiffer requirements for listing coins as part of a bid by the state to boost oversight.
Read more »
Litecoin’s pullback threatens recent gains – Will bulls see reprieve?Litecoin's recent recovery gains are at risk after the weekend reversal. Can Litecoin prevent further loss ahead of the Fed's decision?
Read more »
Recent violence on Toronto transit 'indicative of something larger': TTCThe Toronto Transit Commission says the rash of recent violent incidents that erupted on its network over the weekend points to a bigger problem that requires an “all hands-on-deck” approach.
Read more »
Recent violence on Toronto transit 'indicative of something larger': TTCThe TTC says the rash of recent violent incidents that erupted on its network over the weekend points to a bigger problem that requires an “all hands-on-deck” approach.
Read more »
Bank of Israel MPC voted 5-0 to hold rates, may hike more -minutesMarket News
Read more »
Charla Huber: Young Indigenous entrepreneurs are on the riseJumping into entrepreneurship can be scary and there is uncertainty. It also builds confidence, skills, strength and courage
Read more »