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 MAY 12TH, 2017:
In the eighties the world was introduced to a new toy known as the Rubik’s Cube. There ensued a massive uptake of the toy amongst the general population despite the fact that the only way most of us could actually solve the puzzle was to take the stickers off and put them back on so it appeared as though we had completed the Cube. Anytime something like the Rubik’s Cube comes around the question of Fad vs. Trend begins to be talked about. That same question has begun to be discussed about the Toronto real estatemarket and it is a question that we will only answer with time. The Rubik’s cube has become the bestselling puzzle of all time. I think we can declare that one a trend. As we head into the last holiday weekend of the spring season we will watch carefully to see how themarket reacts when everyone is back to work on Tuesday. Have we witnessed a fad in our market or are we looking at the beginning of a trend?
The freehold market continued to see increases in inventory and declines in sales for the third straight week. New listings increased 9% over the previous week from 454 to 496. It is important to note when looking at those numbers that we have seen a marked increase in re-lists, those properties that were priced for a bidding war that did not come to be and have been put back on the marketat a higher price. It has been reported that as many as 20% of new listings are actually re-lists from properties that did not sell the previous week. The drop in sales was again the exact opposite of new listings with sales dropping 10% over the previous week. The largest drop in sales was reported in the west end though it is interesting to note that 85% of all west end sales were above their list price compared to an average of 72% for the rest of our study area.
In the condo market we believe we are seeing a trend as the percentage of listings that sold above their advertised price again declined with 66% of all listings selling above their listed price. It is important to note that it appears the days of huge offer premiums above the list price for condos are likely over. While many sales are still achieving a mark above the list price the percentage above list price continues to decline. Condos saw a 5% increase in listings but for the first time in four weeks saw a decline in sales down 9% over the previous week.
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:
Home sales cool in April, GTA leads decline
“Home sales cooled in April after setting a record the previous month as the pace of transactions in the Greater Toronto Area slowed, the Canadian Real Estate Association said Monday.”
Developers offer insights into GTA condo trends
“Larger units and more buildings in public transit-accessible suburban locations are two of the trends to look for in the Greater Toronto Area condominium market..”
Hong Kong ad offers to cover foreign buyers’ tax for Toronto condo investors
“A real estate ad has surfaced in Hong Kong promising to cover Ontario’s recently-implemented foreign buyers’ tax and a rent guarantee of up to one year for the first 30 buyers of units in a downtown Toronto condo building.”
Commercial rents in Toronto could soar as much as 50% in the next three years as market tightens
“We need more homes. This statement shouldn’t come as news in Toronto’s housing crisis. The good news is, we have room for these homes right here in Toronto, close to jobs and services and far from the Greenbelt.”
Anarchy in the sky: The condo dream becomes a nightmare
“If you’re a baby boomer and/or empty-nester living in suburban Toronto, you’ve no doubt considered ditching the house and moving into a sleek downtown condo. You may already have made the leap to take advantage of the rich cultural menu that city life offers. The burbs were great for raising a family and holding backyard barbecues. But they’re deathly boring and dining out often means choosing between Swiss Chalet and East Side Mario’s..”
The market is in flux; we are watching a slow down and a changeover of priorities. 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 • firstname.lastname@example.org
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