Mattamy Homes, which claims to be the largest privately owned homebuilder in North America, has reportedly been sending emails to its customers to announce that its sales offices will be temporarily closed.
In the email, the homebuilder says that its sales offices are closing to prepare for the launch of “an exciting new release” in the communities of Upper Joshua Creek, Preserve West, Seaton Mulberry, and Mount Pleasant North, but did not say when the release will be or how long the offices will be closed.
Twitter users responding to the post speculate that the homebuilder might be pressing the pause button as home prices and home sales drop in the foreground of rising interest rates. Some anticipate the homebuilder to return with lower prices.
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On Wednesday, the Bank of Canada once again raised interest rates, this time by 75 basis points.
Murtaza Haider, a professor of real estate management at Toronto Metropolitan University, recently appeared on the Financial Post podcast Down to Business and explained that the rising interest rates are forcing potential homebuyers to seek lower price brackets, thus bringing housing prices down. And while prices are down, prospective homebuyers tend to stay on the sidelines waiting for the market to bottom out.
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He says that the desire is there, citing the recent housing affordability report by RE/MAX which found that over 64% of Canadians are willing to relocate to afford a house, it’s just suppressed by the uncertainty from inflation.
Mattamy, interestingly, has not announced the temporary closures on its website and social media pages.
Information for this briefing was found via Twitter and the Financial Post, and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
