As we settled into our sales meetings this week the topic of the day was definitely what was happening to the market and if the recent government changes have had the desired effect in increasing the affordability of housing in the city. Much of our conversation centered around the differences between the massive downturn in the market in 1989 versus the brief pause in the market we experienced in 2008. While admittedly none of us actually own a crystal ball, the general consensus was that these past few weeks will likely be a pause in the market and not a large correction as some Sellers are fearing and most Buyers are hoping for. What we may be seeing as a result of this pause is a move towards more realistic pricing and less of setting a low asking price and letting the market show us the true value. All the more reason to make sure you hire a Realtor that knows how to properly price and market a property.
The freehold market saw an increase in new listings of 15% up to 454 from 394 the previous week. It is normal at this time of year to see an increase in listings as the Spring market hits its stride and this increase seems far too low to indicate a flood of listings to the market by fearful home owners who think we are facing a serious price correction. In an exact opposite trend there was a 15% drop in the number of sales to 196 from the 232 over the previous week. This is a trend we will follow carefully as we are expecting a rebound in sales numbers over the coming weeks. While pre-emptive offers continue to disappear from the landscape it is interesting to observe that 73% of all homes still sold above their asking price.
The condo market continues to separate itself from the freehold market with a week that saw both new listings and sales increase over the previous week. New condo listings increased 6% and sales kept very close track increasing 5% over the previous week. Condos also continue to sell above their list price with 75% of all sales happening above the advertised price.
HERE ARE THE TOP FIVE TRENDING STORIES OF THE WEEK:
Where the most (and least) expensive condo areas are along the subway
“Want a condo but don’t want to compromise on TTC access? Consider something in the Danforth area where the price per square foot is substantially lower than buildings on the Yonge-University-Spadina subway.”
Toronto, Victoria are world’s ‘hottest’ luxury real estate markets
“Toronto and Victoria, B.C. are the world’s “hottest” markets for luxury homes as investors flock to Canada for its political and economic stability, according to a new report from Christie’s International Real Estate.”
The single best deal in Toronto real estate
“In an overheated Toronto real estate market where the cost of an average home is around the $1-million mark, there is one incredible bargain: a tumble down lakefront house going for only $14,276. The long-term lease for the land is extra, but it is only $71,830.”
Toronto has space for housing
“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.”
No Fixed Address: More immigrants ‘fleeing to the suburbs’ as Toronto housing prices keep rising
” The high prices of both housing and insurance in Toronto were a “cultural shock,” says the 32-year-old software engineer, who works downtown in Liberty Village.”