Expert says many buyers are "ready and poised" to ramp up purchasing plans
Homebuyers with mortgage pre-approvals are being advised to enter the housing market now instead of waiting for a dip in interest rates.
According to Leah Zlatkin, a mortgage broker associated with LowestRates.ca, the upcoming spring market is going to be “very hot” due to accumulated demand.
The heightened demand comes as a backlog of buyers hold off on making purchase in anticipation of rate cuts that economists have projected to occur around June.
But Zlatkin noted in an interview with the Financial Post that many homebuyers are “ready and poised” to proceed with their purchases, explaining that the present moment may offer more advantageous conditions.
“For those people who are pre-approved, I highly recommend getting into the market now as opposed to waiting,” she said.
Zlatkin cited the scarcity of available properties in Ontario, which has led to a competitive market where bidding wars on homes priced at $1 million or higher are becoming increasingly common.
The higher rates have also made it more difficult to qualify for a mortgage, Zlatkin added, especially in areas like the Greater Toronto Area (GTA).
She said buyers “may need to make sacrifices” by considering smaller homes or locations further from urban centres to secure a foothold in the market.
The demand for housing is anticipated to remain high amidst a construction slowdown. The Canadian Home Builders’ Association (CHBA) recently reported that homebuilder sentiment currently at record lows.
“There’s no question that the high-interest-rate environment continues to have a huge impact on sales,” Kevin Lee, CHBA’s chief executive, said in statement from February. “We expect it’ll still be a pretty slow start to 2024, to say the least."
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