Posted May 14, 2024, 9:58 PM
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Registered User
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Join Date: Jul 2009
Location: Toronto
Posts: 3,794
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Quote:
Originally Posted by Northern Light
The market is indeed in the tank.
Its not that nothing is moving, but sales are way off.
Interest rates are definitely a crucial factor.
Launches are off, at least one launched project has been pulled from the market, and several projects that have launched, that 3 years ago would have sold out in a week or three, are still on the market months and months later.
The odd well positioned project is still doing fine, but yeah, all is not well.
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Will it fully recover if interest rates drop? Maybe. I certainly expect it to uptick a bit. Some projects may come back as rental for which incentives have drastically improved.
But I think the question of how much of an interest rate drop is necessary is open. I don't think a 50 basis point drop will bring back the boom, but 100 points will certainly lubricate sales.
But there lots of other intermingling factors. As it stands, I would expect some market acceleration by fall, subject to at least 2 interest rate cuts.
But its a wait and see thing right now.
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Thank you for the detailed reply.
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