The Toronto Regional Real Estate Board (TRREB) has reported that homebuyers are waiting for more interest rate cuts before re-entering the market. This hesitation comes as interest rates remain high, making homeownership less affordable for many. TRREB’s outlook suggests that it may take another year for the housing market to fully rebound, even if rates start to decrease in 2024.
TRREB notes that current market conditions are marked by reduced sales and slower price growth. Although some buyers are still active, many are holding off, hoping for more favorable borrowing costs. This wait-and-see approach is creating a slowdown in market activity.
Additionally, high interest rates are affecting affordability, leading many potential buyers to delay purchasing decisions. However, TRREB remains cautiously optimistic that once rates decrease, the pent-up demand will help stimulate the market again. Until then, homebuyers appear to be waiting for better opportunities.
With the economic uncertainty and inflation concerns, the Canadian housing market remains unpredictable. TRREB is urging policymakers to consider actions that would help ease the burden on homebuyers and support long-term affordability in the housing sector.
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