Market Insight: Week of December 28th

Toronto New YearsIt’s been a few weeks since we last reported and this being the beginning of a brand new year we wanted to get off to an early AND fresh start. Here’s a recap of what we are all about…Our market insights give you a quick snapshot of what’s happening in the core neighbourhoods of the city. We track listings and sales of homes and condos from the 401 to the lake and stretch as far east as the Beaches and as far west as Bloor West Village. To truly understand and gauge the temperature of the real estate market in Toronto we scour the data available to us and record key metrics such as the number of properties in various price ranges and how many are being traded at or above the list price. The research is extensive and time consuming but provides our agents and their clients with the knowledge they need to make informed decisions. Today is the starting point on a year-long journey.

In the freehold sector, listings are currently at an all-time low. By comparison, in late May of 2015 we had nearly 500 new listings on the market. Last week we recorded an impossibly low 45. The lack of listings did not deter buyers however. In the week between Christmas and New Year’s Day we recorded 27 sales with just under half of them at or above the list price. In one situation we saw one mid-priced detached home property sell over $200k more than the list price.

Not surprisingly, the condominium market is also experiencing low listing activity. Just 153 properties were listed throughout the core of the city last week. A surprising 14% of the 68 condos that sold traded at or above the list price. We are well off the record number of listings that we will see at the height of the market but even with low levels of existing listings there are plenty of opportunities to find excellent end user or investment suites.

HERE ARE THE TOP FIVE TRENDING STORIES OF THE WEEK:

What will it take to rein in Toronto and Vancouver housing prices?
Before the recent federal election, the Liberal Party promised to “undertake a review of escalating home prices in high-priced markets – such as Vancouver and Toronto – to determine whether speculation is driving up the cost of housing and survey the policy tools that could keep home ownership within reach for more Canadians.”

Real estate silver lining in year of ‘serial disappointments’ – Poloz
Bank of Canada Governor Stephen Poloz summed up the Canadian economy best by calling it “another year in the serial-disappointment series.”

Only draconian rules will cool hot housing markets: Toronto’s ‘Condo King’
The man dubbed Toronto’s “Condo King” says Ottawa’s efforts to cool red-hot housing markets in Toronto and Vancouver will amount to no more than a symbolic gesture. “A lot of people are making noise about trying to slow down real estate in Toronto and Vancouver. You’re not going to slow them down through government intervention, unless it’s draconian and stupid,” said Brad Lamb, the president and CEO of Lamb Development Corp in an interview with BNN.

Is a rental property a good investment?
Builders and real estate experts from both the new and resale home sectors are banding together to warn consumers – and politicians – they are worried about the skyrocketing costs of housing.

Paying down debt remains top financial priority of Canadians: poll
A new CIBC poll suggests that paying down debt remains the top financial priority of Canadians, but it’s a goal the bank says many appear to be having difficulty meeting.

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