TORONTO — Real estate market analysts say the Bank of Canada's much anticipated decision to lower its key interest rate could be the sign that many would-be homebuyers have been waiting for to make their move.
The board said 7,013 homes changed hands in the month compared with 8,960 in May of last year, which coincided with a brief market resurgence. TRREB president Jennifer Pearce said homebuyers were waiting for"clear signs" of declining mortgage rates before going ahead with purchasing a property. "Typically when rates go down, prices go up. So this would be the time where people come off the sidelines, knowing and anticipating that prices are likely to rise."
"People purchase homes less so on the sticker price, the actual sale price of the property, but more so on the monthly carrying cost of the property," said Yolevski.