The real estate stories in Toronto continue to dominate the media! We can always count on our parent brokerage – Bosley Real Estate – for smart market analysis and the most relevant real estate news stories. And this week there are some surprising revelations.
MARKET UPDATE FOR THE WEEK ENDING APRIL 21ST, 2017:
The sky is not falling. The pigs are not yet flying. And we are pretty sure that the price of real estate in Toronto is going to keep climbing, though perhaps not as quickly as it was already this year. But really, maybe it will. After the announcement of the Government of Ontario’s ‘Fair Housing Plan’ our in-house experts pored over the information looking for whatever information might lead us to think the suggested changes would improve housing affordability in the GTA. We quickly dismissed point 15 thinking that while working elevators are fairly essential in a condo building, their lack of movement up or down was probably not having a huge effect on affordability in the market. Many of us thought it might be fun to join the ‘Housing Supply Team’ or the ‘Housing Advisory Group”, but at the end of the day we all have full time jobs that we like. The two points that we did pull out that we think will affect the market were the 15-per-cent Non-Resident Speculation Tax (NRST) and the imposition of rent controls on all properties in Ontario, eliminating the exemption for properties built after 1991. For now we wait patiently for the legislation that will make all these announcements law and will give us the details that will allow clarity moving forward. On one last note, if you were thinking of heading out of town for your next purchase you should probably take a look at the articles below on house prices outside the City of Toronto.
The Freehold market experienced the typical after holiday resurgence in listings, more than doubling from 181 during the previous holiday filled week to 436 this past week. The increase in listings was city-wide and should help provide options for those Buyers still hot to purchase in the spring market. Not surprisingly, following a week of fewer listings there were also substantially fewer sales last week. The freehold sales in our study area topped out at exactly 100 with an even 70% going above their list price, down from a peak of 90% three weeks ago. Two interesting things of note last week were the steep decline of listings selling before their offer date with only around 10% selling in pre-emptive offers and the easing off of the percentage of sale price above the list price which seems to be settling in around 120% above the advertised price.
The condo market also witnessed a huge increase in listings adding nearly 200 more new listings than the previous week, going from 258 to 447. Like the freehold market condo sales also declined last week dropping from 224 to 151 this week, though the percentage of sales above their advertised price stayed relatively high with 70% of units selling above the list price. We think it is the condo market that will be most affected by the new rent controls and suspect there may be an uptick in new listings as the market moves forward.
Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto, Niagara-on-the-Lake, Jordan, 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 WEEK:
Report blames Ontario’s 2006 growth plan for soaring house prices
“The Ontario government’s 2006 growth plan for residential land development has spurred soaring increases in house prices in the Toronto region by limiting construction of new low-rise family homes, according to a report to be released Tuesday..”
Rent control measures could lead some Ontario condo investors to sell: report
“New rent control measures unveiled last week by the Ontario government could push some small investors out of the condominium market, according to a new report.”
Torontonians behind a quarter of Hamilton housing sales: study
“Nearly one quarter of Hamilton area homes sold in the first three months of the year were purchased by buyers from the Greater Toronto Area, a new analysis of the local marketplace has found..”
Barrie’s hottest house prices
“Barrie has one of the hottest real-estate markets in Canada. According to a Re/Max Spring Market Trends report, Barrie’s average house price rose by 39% in 2017 over last year’s prices.”
This Ontario city is 1,400 km from Toronto. So why are home prices up 20% in a year?
“Some experts suggest Toronto’s housing bubble has fanned out as far as Thunder Bay, or roughly 1,400 kilometres away. The city, known as Canada’s Gateway to the West for its proximity to the Manitoba border, is seldom mentioned in economic commentary by one of Canada’s biggest banks.”
While we can never be completely certain where the market is headed, I – and my team – can make solid decisions about strategy based on history, existence of key influencers, and likely trends. At urbaneer, we understand the intrinsic value of being aware of what the experts say, and assessing their advice within the context of our own experience. Please know we are here to help!
~ Steven and the Urbaneer Team
Bosley Real Estate Ltd., Brokerage • (416) 322-8000
http://www.urbaneer.com • info@urbaneer.com
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