We are fed up with vortexes, (polar, pollen or otherwise), so this week we want to describe the increase in new property listings as Toronto’s Listing Tsunami. After a series of holidays and long weekends contributed to low inventories it seems that Sellers are finally getting with the program as both freehold and condominium listings nearly doubled last week. This tsunami is just what the city needs to quench buyers’ thirsts for homes.
While hitting a low of only 326 new listings in the core just a few weeks ago, last week we saw a remarkable 629 new freehold listings. Such an increase would surely make The Canadian Mortgage and Housing Corporation shiver if it weren’t for the 36% increase in sales as well. It is also worth noting that over 62% of those sales happened at or over the list price, marginally lower than a week ago. The sweet spot last week was the west core where sales in the first-time buyer market ($400k-$700k) doubled. The weakest sector continues to be the central core’s high-end (homes listed above $3M) where there are now 142 homes listed versus only 2 sales last week.
The condominium market in the Toronto core continues to shine. While there was a 35% increase in new listings last week, sales increased by 39%. As long as this trend continues we will keep taking bites out of the standing inventory. Last week we were happy to report that over 29% of condos sold at or above asking, that after all is pretty spectacular. This week that number has climbed to a remarkable 32% making us reach for the champagne hidden away in the back of the office fridge. While the east and west cores are taking a little breather, the central condo market is red hot with nearly double the sales in the $700k-$1.5m range.
HERE ARE THE TOP FIVE TRENDING STORIES OF THE WEEK:
HOW WILL RISING MORTGAGE RATES AFFECT CANADIAN HOUSE PRICES?
A 2 percentage point increase in mortgage rates would likely cause a significant price correction in the Canadian housing market if it happened all at once, but not if it took place gradually between now and the end of 2016, says Bank of Montreal economist Robert Kavcic..
TODAY`S NEW HOME CHOICES: MOVE UP, OUT OR IN
What’s the best way to characterize what’s been happening in the GTA housing market in recent years? Two words: growing extremity.
IS YOUR HOUSE A HOME OR A NEST EGG?
More than two-thirds of Canadians who bought in the last decade view their house as a place to live and just 31 per cent as a nest egg.
CAN’T AFFORD A HOUSE IN TORONTO? BE PATIENT
With prices of single family homes already up over 13 per cent year over year, the dream of owning a home in a desirable neighbourhood is quickly fading for many would-be Toronto home owners. In popular areas along the Yonge subway line, even semi-detached homes are now selling for over $1 million, which is out of reach for most buyers.
REAL ESTATE PRESIDENT WARNS AGAINST LAND TRANSFER TAX
Ontario’s real estate industry has declared war on the idea of a new land transfer tax for municipalities. Costa Poulopoulos, president of the Ontario Real Estate Association, was in Hamilton Tuesday to rally against an idea he said several large city mayors have been exploring. “This is just a bad idea,” he said in an interview.