Every once in a while you get ‘one of those weeks’ that prove the Toronto real estate market isn’t an island unto itself. Apparently there is life outside our little corner of the world. Last week we saw a perfect demonstration of how external forces affect real estate in our city as several houses in the downtown market didn’t sell on offer night. The major culprit…a brief blip in the Toronto Stock Market and a drop in value of the Canadian Dollar.
Freehold listings continued their descent from three weeks ago. From a fall high of 586, new listings are down another 17% this week while sales have backed off 35%. Even with fewer listings and sales our market is still in the Seller’s corner as nearly half the week’s sales were in multiple offer scenarios. While economic indicators took a negative turn last week we also believe that some Buyer exhaustion has played a role in fewer bidding wars. Looking forward to the upcoming weeks we believe that the trend toward fewer listings and multiple offers will level off at least until the next buyer cycle in mid-January.
It is interesting to note that this week the condominium sector out-performed the freehold sector. While listings were down only marginally, there was actually an increase in the number of sales at or above the asking price. This strikes us as continued good news for the condo sector and further proof that it is built on solid foundations. The central and higher-end segment of the market remains less robust than the mid-priced east and west areas of downtown Toronto due in part to larger and less expensive suite options.
HERE ARE THE TOP FIVE TRENDING STORIES OF THE WEEK:
NO MATTER WHAT STATISTICS SHOW, CANADA’S HOUSING BOOM IS ABOUT TO END, EXPERTS SAY
It might be hard to convince some Canadians the end of the housing boom is near based on new statistics from the Canadian Real Estate Association which show prices still rising.
CANADIANS PAYING DOWN DEBT QUICKLY IN LOW-RATE ENVIRONMENT
Contrary to all the hype about consumer debt levels, Canadians are paying off their debts, especially their mortgages, at a faster rate than the Bank of Canada estimates, says CIBC economist Benjamin Tal.
FOR SOME, IT’S STILL A GOOD TIME TO BUY A HOUSE IN THE GTA
The past 30 years have been a good time to own a home in any major Canadian city. In the Greater Toronto Area, it’s been like winning a lottery.
PARKING LOT SALE SHOWS TORONTO CONDO JUGGERNAUT POWERS ON
The sale of a parking lot ringed by pawnbrokers and frequented by panhandlers is among land transactions that have tripled in Toronto this year, signaling the next wave of condo construction is on its way.
BEFORE YOU SOUND THE DEBT ALARM, KNOW HOW MUCH YOU HAVE
Kevin is a 27-year-old Vancouver resident who makes about $50,000 a year as a graphics designer and has $520,000 worth of debt — an amount he feels quite at peace with.