Do you ever wonder when Toronto’s real estate market will cool down? Some buyers just wait patiently for a little relief but even with this Spring market upon us, it seems that there is a better chance that the Leafs will make the playoffs than a typical buyer paying less than the asking price.
Last week, yet again, we saw another jump in freehold listings in the central core. We know that active agents are working with multiple buyers so you would think that agents would breathe a collective sigh of relief as 9% more homes came on the market. Sadly that wasn’t the case as sales increased by a remarkable 65%. That in itself is worthy news but the real story here is that over 70% of those homes sold at or above the list price. This past week set an all-time new record in the Toronto real estate market.
We are feeling much more comfortable with the condominium market right now. While the number of suites coming on the market has fluctuated, listings have been trending down. This is only good news (and a sign of a more balanced market) when sales are trending up or, at the very least, not trending down at the same rate. Last week, listings fell by over 16% while sales declined by only 13%. For the second week in a row, the number of suites that sold at or above the list price remained at 25%. While the bulk of the sales activity continues to focus on the first time buyer category ($200k-$400k) there has been some movement in the upper middle end ($700k – $1.5m) possibly from frustrated home buyers.
HERE ARE THE TOP FIVE TRENDING STORIES OF THE WEEK:
SHORTAGE OF HOUSE LISTINGS IN TORONTO COULD BE BOON FOR CONDO SALES: SCOTIABANK
The shortage of single-family homes for sale across Toronto is likely to buoy the resale condo market this year as first-time buyers look for an affordable alternative to a place with a picket fence, says a new report from Scotiabank.
WHY CUT-RATE MORTGAGES WON’T BE HERE FOR LONG
That cut-rate mortgage may not be here for long given a probable rise in bond yields, economists say.
RELAX: YET ANOTHER REPORT SAYS TORONTO’S REAL-ESTATE PRICES ARE HEADED FOR A SOFT LANDING
There’s a definite undercurrent of gloom in Toronto’s real-estate market, thanks in part to a booming condo-construction sector that for years, according to analysts, has threatened to outstrip demand. Now, a different group of analysts is saying that all those overbuilding fears are overblown.
HOGTOWN IS CONDO TOWN
Is Canada’s biggest city turning into a condo town? According to the Building Industry and Land Development Association, only 35 new “low-rise” homes – also known as single-family houses – were sold last month in Toronto, home to 2.79 million people.
FEARS OF A HOUSING BUBBLE IN CANADA OVERBLOWN, REPORT SAYS
Fears that a housing bubble is brewing in Canada are overblown, according to a new report by the Conference Board of Canada.