When economists think the Toronto Real Estate Market is about to crash, the market seems to go up and when bankers say it’s going to accelerate it slows down. Trying to figure out what the market is doing is like trying to figure out the most confounding tool of modern times….the Rogers cable remote. Luckily you have the Bosley Insight to provide insights into Toronto’s complicated market.
For the third week in a row, listings in the freehold sector have dropped. Sure, we’ve had some short work weeks which may have accounted for fewer new listings, but we didn’t expect a nearly 50% decline. More surprising was the nearly 80% drop in sales. Normally such declines would signal the end of the Spring Market but our research indicates this is only a temporary setback. Conditional deals are higher than normal this week and over 53% of transactions recorded last week sold at or over the list price.
Likewise, the condominium market is following the freehold trend. Last week alone there were 19% fewer new listings available. While there were 11% fewer sales the number of suites selling at or above reached nearly 30%, the highest level this year. The hottest sector continues to be in the mid-range market which we believe is due to first time home buyer frustrations with low inventory and multiple offers. Nowhere is this more evident than in Leslieville and Riverdale where we saw almost every sale above $500k sold substantially over asking.
HERE ARE THE TOP FIVE TRENDING STORIES OF THE WEEK:
TORONTO HOUSE PRICES SOAR INTO THE STRATOSPHERE
Toronto home sales caught fire in the first half of May, but at this frenzied pace, homeowners better hope that fire doesn’t burn everything down.
THE BANK SAID NO: NOW WHAT? TIGHTER MORTGAGE RULES HAVE SENT BUYERS LOOKING ELSEWHERE
Investors Group threw coals on the housing fire this week by cutting its three-year variable mortgage rate to a market-share-boosting 1.99%. Federal Finance Minister Joe Oliver is watching.
RISING REAL ESTATE PRICES AND LOW INTEREST RATES KEEP CANADIAN HOUSEHOLDS UPBEAT
The share of Canadians who are predicting higher home prices in their neighborhood remained above 40% for a fifth week in the latest weekly polling by Bloomberg and Nanos Research. That’s kept consumer confidence levels at near the highest in four years, the data show
CMHC PROBES HOW MUCH BANK OF MOM AND DAD MAY BE SKEWING REAL ESTATE MARKET
Ontario’s housing market remains “modestly” overvalued, and that may be, at least in part, because of “gifting” — baby boomer parents who are helping finance down payments on pricey homes their grown children couldn’t otherwise afford, according to the Canada Mortgage and Housing Corporation.
TORONTO TOPS FOR SPEEDY HOME SALES: HOW DOES YOUR CITY MEASURE UP?
Calgary might have the hottest housing market in the country right now, and Vancouver’s might be the priciest, but Toronto is tops when it comes to the speed with which homes are selling.