After a gloomy summer the prospective buyers, having kept a close watch over the Toronto real estate housing market, now see a ray of hope coming their way in the month of September.
But just as the buyers have come forward with their mixed reaction leading to an open bold move or holding reservations for investing in housing properties in Toronto, the sellers have dramatically been hesitant.
To all these indecisions the Bank of Canada has, this week, upwardly revised its benchmark rate point by .25% to 1%.
However some of the names to be reckoned with in the field of Realty, who were about a week back sceptical about the improvement in market conditions, now feel that the falling market would bounce back with the return of buyers and attribute this phenomenon as the pivot point.
The market experts in the field of realty in Toronto say that while the prospective buyer chooses to be cautious they have definitely demonstrated an increase in their confidence level after the general trend of slump that the late spring and early summer had witnessed.
Some of the experts are of the opinion that while it is encouraging to find a lot of properties listed for sale it is more important for the buyers to make a bold move. During the general slump, in the Toronto property market last summer, these experts had been preparing for a substantial increase in listing of properties for sale in the ensuing fall season. However now they are getting a gut feeling that it may not be the case. They say that it is normal for heightened activities in the last few weeks, like it normally happens with the advent of fall.
The experts attribute the increased activities of home hunters and prospective buyers to be normal and of no exception as compared to lat year.
A President of a Realty Incorporation in Toronto says that those homeowners who were expecting to sell would now be speculating for a better price until the normal favourable spring sellers market.
He goes on to comment that it is too early to predict if an increased rate would affect the buyer psychology since many of them choose a fixed period of five years as per their mortgage terms.
It is typical of some buyers to be tempted to quickly buy seeing the possibility of a rate increase while others are dissuaded by increase in borrowing rates of the loan providing institutions.
The said President of the Realty Inc. also sees a ray of hope in the impressive numbers for August, published this week by the Toronto Real Estate Board.
Even while all is being said by these experts they do appreciate that for the demand, price and listings, a lot depends on various factors such as the locality of the house up for sale, the type of the house since there are regional and segmental variations in the market trend as well as region-wise anxiety levels of buyers and sellers.
The Property Agents play are decisive role in the price of House Property but then again how they are able to lure the buyers into a bidding frenzy would be interesting to witness since as per these agents not many buyers are willing to compete against 10 other bidders.
However the demand in the condo market is irrationally strong, with average condo price seeing an incremental jump of 21.4% in August this year as compared against the same month last year. Many feel that the reason is that condos are comparably affordable as opposed to single-family homes.
Some economists are still negatively poised about the possibility of recovery in GTA real estate and believes that the Vancouver and Toronto realty markets of Canada are undergoing a sharp market correction and warn that a decline in activities in this market segment would slow down the economy of the country. This condition may lead the Central Bank to curb its rate increase exercise.