Market Insight: Week of May 9th

luckyIt might be Friday the thirteenth, but this week the luck is all good, especially if you are a seller with a hot property to move. With the spring market in fully gear we are seeing a significant ramp up of new listings and, of course, the corresponding increase in sales. Inventory levels are still critically low which means that even those homes that would otherwise be considered “locationally challenged” are selling quickly.

The freehold market recorded a solid 15.7% increase in new listings last week. Normally we would say that this was just what the doctor ordered. Unfortunately, that increase was overshadowed by a nearly 19% increase in sales with a strong 79% selling at or above the list price, the highest level in 2016 so far. The majority of the new listing activity came in the central core, while the hottest area for sales was in the east with nearly 87% of homes selling at or above the list price.

The condo market had a spectacular week with a 6.4% increase in new listings, to 661, while sales rose by 8.9% to 318 suites. Nothing truly shows the pure strength of the condo market like the number of transactions that took place at or above the list price and last week we set a new record in the 416 recording a remarkable 37.4% of units sold. The hottest price point is the $700k to $1.5m across all core marketplaces which we recognize as a reaction to homebuyers being priced out of freehold homes.

HERE ARE THE TOP FIVE TRENDING STORIES OF THE WEEK:

CMHC CONTINUES TO REDUCE ITS EXPOSURE TO THE HOUSING MARKET
Canada Mortgage and Housing Corp., the Crown corporation that controls a majority of the mortgage default insurance market in the country, continues to reduce its exposure to the housing market.

ONTARIO SETTING NEW RULES TO END ERA OF SUBURBAN SPRAWL ACROSS GTA
The province is promising bold new moves to foster denser, more walkable communities with transit, while preserving green space.

TORONTO, VANCOUVER ACCOUNT ‘FOR ALL OF THE JOB GROWTH IN CANADA’: BMO
The two hottest housing markets in Canada are also the fastest-growing job markets in the country, according to the Bank of Montreal. “Over the past year, Vancouver and Toronto accounted for all of the job growth in Canada,” BMO Chief Economist Douglas Porter wrote in an update sent to investors this week.

CANADIAN LUXURY SALES NOW COMPETING ON WORLD CLASS LEVELS WITH TORONTO AND VANCOUVER ON THE RISE
Two Canadian cities have climbed into a top-10 list of markets for the most active luxury home sales as debate on the influence of foreign buyers continues to grow.

TORONTO REAL ESTATE WILL CONTINUE TO DO ‘EXTREMELY WELL’, SAYS FORMER RBC CEO
Former Royal Bank of Canada CEO Gord Nixon is bullish on Toronto real estate. “I think real estate in Toronto is going to continue to do extremely well,” he told BNN in an interview prior to being inducted into the Canadian Business Hall of Fame at a ceremony in Toronto on Thursday night.