What a heat wave! Get to the beach, find a pool, or crank up that A/C! Summer has hit Toronto with full strength, and the real estate market is looking sunny too! After conceding the spotlight to condominiums for a few months, freehold housing seesm to be back on a better trajectory!
Here’s some choice headlines that accompanied the opening week of July!
June is the first month since the pre-fevered market that we are now seeing signs of a new normal real estate market! For the first time in a year we are seeing the average sale price for The City of Toronto exceed last year’s prices. In June the average sale price came in at $870,559 a 5% increase compared to the $829,479 average sale price last year. Supply and demand will continue to play significant roles going forward. It is troubling to see that the number of new listings coming to market is still down. In June Toronto saw 5,243 new listings compared to 6,295 last year. That’s a 16% decline. June’s results are encouraging; however, declining new inventory is a concern headed to the second half of 2018.
It’s easy to see the freehold sector shifting into summer mode. Listings were up slightly over the previous week with the east end up by 33%, but sales were dramatically down with 50% fewer sales last week in all areas of the city. The biggest decline was in the east end where properties in the $700-$1.5m saw a 65% decline in sales from the week before. Chances are buyers are sitting on a dock somewhere up north, but we still recorded 56% of homes traded at or above the list price.
Condo market buyers and sellers expressed a similar sentiment. Listings were up by 44% while sales backed off 36% from the previous week. The condo market is still filling in the gaps left by the housing market as 45% of all sold condos happened at or above the list price. A new interest hike of .25 basis points was announced this week by the Bank of Canada. The rate hike is in reaction to a healthy Canadian economy. The overall impact of the rate hike will be modest for consumers.
*Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto, Niagara-on-the-Lake and Port Hope, Ontario since 1928. We have four centrally located offices and over 250 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized internationally thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately reflect the true temperature of the real estate market.
HERE ARE THE TOP FIVE TRENDING STORIES OF THE PAST WEEK:
Toronto And Vancouver Top-Tier Housing Markets Headed In Opposite Directions: Sotheby’s
“The top-tier housing markets in Toronto and Vancouver are headed in opposite directions, with fear driving Vancouver’s market lower even as optimism returns to Toronto’s market, according to Sotheby’s International Realty Canada.”
Toronto’s detached house prices make comeback: Report
“The popularity of Toronto’s leafy Little Italy and Trinity-Bellwoods neighbourhoods has helped those downtown pockets achieve the best quarter-over-quarter price increases in the Toronto area this year.”
Real estate on the brain: Why buying a home can be so painful
“In June, 2018, the average Toronto home in the Greater Toronto Area cost $807,871, according to the Toronto Real Estate Board. Even in a somewhat calm market, that’s fully double what it cost a decade ago. Price gains such as that have led the Swiss Bank UBS to rank Toronto at the top of its most recent Global Real Estate Bubble Index – the most likely market to burst – topping London, San Francisco and other infamously unaffordable cities. Toronto, it seems, has the most overvalued real estate market in the world. Should you buy?.”
Buyers Remorse? Here’s How Many Toronto Real Estate Buyers Walked Away Last Year
“Toronto real estate sales sometimes fall through, it’s a reality of any market. It’s often not until a few months later that we find out how many sales actually closed. Toronto Real Estate Board (TREB) data shows sales fell through at a higher rate than usual last year. In a small window where price growth reached peak, the rate of cancelled sales doubled.”
Real estate experts predict a return to normal for slumping GTA housing prices
“The slowdown in the Toronto region’s housing market that began last year continued through the first half of 2018, but two big industry players suggest that buyers and sellers are ready to shake off the malaise with a return to normal later this year..”
Missed our June round ups from Bosley?
Steven Fudge, Sales Representative
& The Innovative Urbaneer Team
Bosley Real Estate Ltd., Brokerage – (416) 322-8000
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