28 Jul Notes: Is the negative market sentiment changing?
An attitude shift in the media about the market appears to be in the initial stages. The principal analyst for the CMHC commented this week that she expects the Toronto market to rebound, citing a knee-jerk reaction to the non-resident tax. Unsurprisingly, we also saw numbers released by the Toronto Real Estate Board showing that the condo market remains hot. In addition, one of the top trending stories on the Globe and Mail website is an article citing that not every Toronto neighbourhood is feeling the chill.
Today, Statistics Canada released numbers showing Canada’s economy grew three times faster than economists were expecting. This sent the loonie back over .80 cents and reaffirmed the analyst consensus of another interest rate hike in October. I don’t necessarily see either of these actions as net positive for real estate prices in the long term (higher loonie = less foreign investment, higher interest rates = higher cost to borrow) but in the short-term, buyers may jump back in the market before rising rates erode their budget.
I am continuing to see inventory build, albeit much of it poor stock on the freehold side. Last week’s catch 75 ——–, that I highlighted in the newsletter, unsurprisingly was scooped up quickly for $8–K, $10K over asking. Interestingly, I met the veteran agent who represented the buyer, as he was cross-shopping the property with 197 ——— at the same time I was. Smart guy 🙂