Home sales have been steadily increasing, especially in Toronto. This can be attributed to the spike in home sales in Toronto for the month of August, which was up 20% compared to last year. Vancouver and Calgary saw an even greater increase in volume sales for the month of August as well. Regardless of these rates steadily increasing, compared to 5 years ago, you are getting a great rate. Canadians have seemed to clue into this fact and that is why the buying frenzy has begun. This also has to do with home buyers who obtained pre-approvals earlier in the summer and are about to expire. Rates 3 months ago were significantly lower than currently and Canadians are recognizing to take advantage of these pre-approval rates before it is too late.
One thing buyers should note, you should not overpay for a property just because you are getting a great mortgage rate. In the long run, this could hurt more than help and at the end of the day, if you compare payment amounts, it is not significantly more on your monthly if rates increase. Based on this, we should see the market cool off once we are well into fall. It should pick up again once we enter the always buzzing spring market.
Contact Robert Clancy today to decide if now is a right time to buy/refinance!