01 Dec Market Notes: New listings hit a wall, Sales Strong.
New listing growth has hit a wall this week and buyers are picking over the homes left on the market. I am seeing movement on homes that have been sitting on the market, rather it be that the property has sold or has been reduced. There appears to be a bit of a rush to purchase before the new mortgage restrictions take effect in January and I expect most of the inventory to be moved before the new year. Seller’s won’t being advised to re-list in the new year, as in previous years, so December sales may see an uptick.
Today, the loonie is up significantly (1.59%) on the back of big gains in the latest employment figures. This adds to the likelihood of an interest rate hike in March, as interest rates are broadly tied to the rate of inflation and employment. Faster then expected interest rate hikes, coupled with tougher mortgage restrictions does not bode well for Canadian real estate, Toronto included. A lot has been made of the resiliency of the Toronto market and I expect November’s numbers to come in strong next week, but the true test will come in 2018.
-Nick, Dec. 1/2017
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