Looking to buy in Toronto? Here's what you need to know as the Bank of Canada hikes key rate

For the first time in more than three years, the Bank of Canada raised its benchmark interest rate as the country grapples with rising inflation. As home prices continue to fall, real estate experts in Toronto say this isn't going to do the housing market any favours. I'm concerned about the buyer sentiment. Consumer confidence is generally at an all-time low and you're going to crush that now. People are concerned, they want clarity, they want to know what's going on. And the concern is, is this going to be a snowball effect? The reality is we can't know for sure. The central bank did signal that more rate hikes could be on the horizon. And one real estate agent says that could keep the housing market stagnant. Are we going to have multiple rate increases? And if that's going to happen, you're going to see a crushing pressure on consumer demand. People are going to be really pushed to the sidelines and they're going to wait and see. There's already people looking at the market currently today and saying, hey, if I don't find what I like, if it's not priced the way I like, I'm just going to wait until the spring. Meanwhile, Premier Doug Ford weighed in on the Bank of Canada's rate decision, writing on social media platform X that raising interest rates right now is a massive mistake and they will only make life more expensive for Canadian families and workers, punishing them for something they can't control. Back in the dog days of summer, some real estate agents were predicting a boost in the fall market. That didn't happen. As we were moving through the summer, we thought that, you know, The prospects of a trade deal with the United States were at hand. Obviously, that didn't come to pass, and so that's led to a little bit more uncertainty on the part of a lot of households that may have otherwise been moving back in the market. According to the Toronto Regional Real Estate Board, home sales in September were down 9% compared to the same month last year. The average selling price for the month was down by around $50,000 from a year earlier, and new listings were also down around 14%. The board says buyers remain in a holding pattern. I think even more importantly, you know, confidence in making those payments over the long term has receded a little bit just because people are still concerned about, you know, their employment situation, the overall economy and the prospect for, you know, higher borrowing costs as we move forward. And so we've seen sales ebb a little bit in comparison to last year. Real estate agent Andrew Peckian notes that Toronto is made up of micro markets. He says more desirable neighbourhoods will often still see more movement. But he says buyers have a lot more power now than they did in the peak to take their time, find a price they're comfortable with, and include conditions in their offers. Prices are already low. So if you buy a house today, you're generally getting at a discount than it was before. Will they go lower? Maybe. But the whole idea in Toronto, it is a very specific market. It's about finding a house that you really love and you enjoy. Experts say there is one exception to the uncertainty, and it's the condo market, especially smaller ones. Even if the broader market picks up, an oversupply of condos right now will likely keep those prices low for a while. Talia Ricci, CBC News, Toronto.