30 Jun Market Notes: Interest rates are going up sooner then expected
An interesting development this week is the potential for interest rates to rise sooner then expected, possibly as soon as mid-July. As I have mentioned before, rising interest rates will put pressure on the bottom of the market, particularity first-time buyers in the $350k-$450k range who have small down payments and are squeaking into condos. The prospect of higher interest rates is also pushing the loonie up, which may deter foreign investment further. Short-term, it will be interesting to see if the threat of rising interest rates helps nudge buyers off the sidelines. These are highly reactionary times and in the 416, I continue to recommend being ready for when the right opportunity arises.
This was another slow week for new listings with premium properties continuing to be snapped up. Buyers are taking advantage of the lull to grab premium freehold homes downtown for under or around $1m. There are preliminary signs competition in the freehold market is returning. In fact, XX Montrose received a bully offer over the weekend and sold for well over a million dollars. XX Afton received many offers and sold for a million bucks, inline with my estimate and interestingly, pricing before the non-resident tax.
Nick, June 30/2017