If you’re engaged in any way in the Toronto real estate market, you may be slightly confused be the latest news. It seems contradictory; the market is busy and it isn’t. So, what’s up?
So, here’s a breakdown of the week’s key headlines, plus a helpful explanation courtesy of our parent brokerage, Bosley Real Estate!
“Home prices dip 12% as sales fall ” Toronto Star – Wednesday March 7th, 2018
“Toronto housing prices edge up smartly in February” The Globe and Mail – Wednesday March 7th, 2018
Anyone reading the news will surely be confused by what the media has to say about the real estate market these days. So, what is really going on? The average price for a home in the City of Toronto is $806,494, climbing more than 5% from last month, as well as condo prices rising 5% to an average of $570,275. What the media doesn’t tell you is the frenzy with bidding wars on both homes and condos. A property in midtown had 25 offers last week selling for $500,000 over the asking price. A condo downtown had 14 offers and sold for $105,000 over the asking. We cannot compare the market to last year’s frenzy. Agents are busy, open houses are jammed and buyers are looking to buy. The supply is not there. As we move further into the spring and summer months, growth in sales and selling prices is expected to pick up.
As the days are getting longer we begin to see more freehold listings come to market, up 30% from the prior week. The east end listings doubled from the week before and the frenzy of sold properties saw 77% of them sell over the asking. E0l was the hot spot. The west end was also busy with listings up 35% and of all the properties that sold 66% sold over asking.
The condo market is not showing any signs of slowing. Many condos are drawing multiple offers and it seems the new normal for condos is almost $1000 PSF. Overall listings were up 37% and the central core saw 235 new listings come to market. The sold numbers are steady week to week and of those condos sold 57% sold over asking.
*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:
What Does Donald Trump Mean For Canada’s Housing Market?
“U.S. President Donald Trump sent shockwaves through Canada’s economy this past week, first promising punishing tariffs on steel and aluminum imports, then at the last minute exempting Canada from those tariffs, at least temporarily.”
Toronto’s Housing Shortage: Is It The Result Of Policy?
“Toronto, Canada’s largest city and one of the world’s hottest property markets, has a supply problem and the nation’s housing agency admits it is not quite sure why soaring prices have not spurred more construction.”
Housing Could Well Be The Biggest Issue Of Ontario’s Upcoming Election
“The 2015 federal election, you may recall, was dubbed Canada’s “housing election.” An improved Home Buyers’ Plan, better data collection on foreign buyer activity, more affordable housing and the creation of a National Housing Strategy were tops among the agenda items. Three years later, eventual winner Justin Trudeau has addressed many of these issues.”
Despite stricter mortgage rules, Vancouver home prices are rising. This expert explains why
“On January 1, a new mortgage stress test was rolled out that many economists predicted would cool activity in Canadian housing markets. However, despite the stricter rules, home prices have continued to rise in Metro Vancouver and tight supply is to blame according to an economist from one of the country’s biggest banks.”
Investing in firms with women at the top can ease volatility, study says
“Hong Kong—Investing in companies that have more women in leadership roles can help lower the volatility of your portfolio, according to Bank of America Corp.”
*Missed any of last month’s round ups?
Steven Fudge, Sales Representative
& The Innovative Urbaneer Team
Bosley Real Estate Ltd., Brokerage – (416) 322-8000
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