Why experts say predictability is returning to Ontario’s real estate market

It was a pretty slow summer for real estate sales in many Ontario markets, was this a harbinger of things to come as we now enter one of the busier periods of the year?

Before the days of bidding wars and bully offers, the real estate market used to be cyclical and fairly predictable.

There was a spring market, which was typically the busiest time of year, and there was a fall market, where the action typically picked up following a quiet summer.

However, over the past decade, the pace of the real estate market picked up and realtors were forced to quickly adjust to the rapidly changing market, especially when the pandemic hit, and interest rates were at rock bottom for a lengthy timeframe.

Things changed again last year as interest rates slowly began to creep up, leaving realtors across Ontario trying to advise their clients as best they could in a constantly shifting landscape.

In January, many believed the Bank of Canada was done raising interest rates and the market began to heat back up in the spring, prompting rates hike in June and July, Robert Hogue, RBC’s assistant chief economist.

“We’ve seen in July and August with the most recent numbers and especially August, that home retail activity has come down,” he explained.

After the interest rates went up, sales slowed across much of Ontario, which was a sign to some realtors that we may be seeing a return to old real estate ways.

“I think we’re starting to see a bit more predictability in the market versus volatility,” Kitchener realtor Tony Johal explained about a return to real estate markets past.