Last Week In Real Estate – February 18-24, 2024

Unexpected inflation drop won’t hasten Bank of Canada’s rate cut plans, economists say

January’s inflation in Canada, at 2.9%, was below expectations, driven by lower energy prices and cooling grocery costs. Despite this, the Bank of Canada is expected to hold off on rate cuts until mid-year, given persistent shelter cost pressures and a strong job market start in 2024. Economists anticipate the Bank will wait for more definitive signs of inflation control before adjusting rates, with bond markets slightly adjusting rate-cut odds post-inflation announcement.

New Framework for Multi-Tenant (Rooming) Houses

Starting March 31, 2024, Toronto will require all multi-tenant (rooming) house operators to obtain a license. This new regulatory framework, adopted by Toronto City Council, permits multi-tenant houses city-wide, introducing consistent standards and enforcement to ensure tenant safety and address neighborhood concerns. The framework aims to expand affordable housing options and support complete communities with diverse housing needs. Information sessions for operators are scheduled for February 2024 to outline the new licensing process and operator responsibilities. For more detailed information, you can visit the City of Toronto’s official website.

Betting Toronto home prices will skyrocket once rate cuts come? Here’s why economists say that’s unlikely to happen

Economists predict the Bank of Canada will delay rate cuts until mid-2024, with a gradual home price increase expected in the latter half of the year. A significant rate cut could reinvigorate the market, yet modest price rises are forecasted to prevent overheating. This cautious approach aims to balance easing mortgage costs without reigniting the market frenzy experienced during the pandemic. The central bank’s strategy reflects a commitment to gradual rate reductions, mindful of the impact on housing affordability and market stability.

Beyond the bank of mom and dad

First-time homebuyers are adopting innovative strategies to overcome high prices and interest rates, such as co-ownership, house hacking, pre-construction purchasing, and rent-to-own programs. These methods offer creative solutions to the challenges of entering the housing market, blending investment opportunities with practical approaches to affordability and ownership.

Real estate buyers in Toronto find competition has returned

The Greater Toronto Area’s real estate market is experiencing a shift, with increased competition and properties selling above asking price, a change from the slower pace of the fall. This rise in demand is attributed to scarce listings and buyers adjusting to recent interest rate trends. Economists predict a potential interest rate cut by the Bank of Canada, which could influence the housing market dynamics further. Buyers are becoming more active, yet remain cautious, aiming to bid within their means rather than stretching their budgets

-The TanTeam Editorial