Toronto has a fever and it’s not just World Cup fever either. Sure there is a lot of cheering going on in the streets but it’s not a celebration of a soccer victory. This time, people are cheering about the value of their homes. The condominium market, the bellwether of real estate health, has been very strong despite claims of overbuilding, and single family homes in the city are averaging over $1 million. Clearly Toronto has a supply and demand issue with over 64% of homes and 25% of condos selling at or over the list price. Weekend open houses and patio seating in Little Italy share one problem….crowd control.
Last week new freehold listings jumped substantially. Generally more listings mean more choice for buyers but last week there were more buyers too. The end result was that we saw a 7% increase in the percentage of listings sold at or above the list price (64%). The hot spots in the core were the first-time market in the East and the move-up market in the West where 78% and 75% of homes sold in multiple offers respectively.
The condominium market continues to keep pace as well. Despite a nearly 31% increase of new listings on the market last week, sales were strong. Overall, 25% of condos sold at or above the list price, however the east core continues to surprise. Sales in the move-up market, those at $400k and above, have been consistently frothy over the last few months with multiple offers taking place on nearly half the condos sold. No surprise in the high end condo market ($3m +) which remains very quiet.
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.
CANADA’S CONDO-MANIA TO BLAME FOR LACK OF AFFORDABLE RENTALS: OECD
Canada appears to have a shortage of affordable rental housing, and condos are a big part of the problem, the Organization for Economic Co-operation and Development says.
LOONIE TO LIFT CANADA’S ECONOMY, HOUSING TO HINDER, FORECAST SAYS
Economy to pick up. A weak currency will help buoy Canada’s economy this year and next, though a slower pace in the housing market will temper the recovery, a new forecast suggests.
CMHC MORTGAGE GUARANTEE PUTS TAXPAYERS AT RISK: OECD
The federal government needs to limit the percentage of a mortgage loan it is willing to insure against default in order to protect taxpayers, says OECD.
JOE OLIVER’S HANDS-OFF STANCE ON MORTGAGES A ‘MISTAKE’ IN OVERHEATED MARKET, WARNS SUN LIFE
Canadian Finance Minister Joe Oliver’s hands-off stance on mortgage rates is a mistake in an overheated housing market, Sadiq Adatia, chief investment officer at Sun Life Global Investments Inc., said.