MARKET UPDATE FOR THE WEEK ENDING APRIL 16TH, 2016 - Bosley Real Estate Ltd. Brokerage - Homes and houses for sale in Toronto including Cabbagetown, The Annex, Danforth Village, Lawrence Park and Riverdale

MARKET UPDATE FOR THE WEEK ENDING APRIL 16TH, 2016

  • Bosley Real Estate
  • 21 April 2016

Houston, we have a problem. After the Season opener (no, not of the Toronto Blue Jays, we are talking about the spring real estate market) we welcomed the rise of new listings, both house and condo, coming on line. This was welcome relief to buyers who have been waiting on the sidelines to finally take the leap into home ownership. For three weeks in a row, new listings improved and, by natural process, sales improved as well. Then we hit a roadblock as new listings tapered off dramatically. We expect new listing levels to rise again but chronic supply issues may be the new normal for the Toronto real estate market.

The freehold sector produced some interesting revelations last week. While listings backed off by nearly 50%, sales across the 416 remained consistent with the previous week, as did the percentage of homes that sold over the asking price, 78%. Here are some interesting things we saw. First, four out of the ten homes sold in the $3M+ range in the central core had multiple offers. While that speaks directly to the health of the high-end market in the city, the entry level home ($400k-$700k) continues to be a challenge for first time buyers as 90% of homes sold in that range had multiple offers and sold over the asking price.

The condominium market has showed its strength again last week. New listings dropped by 21.5% while sales increased by 17.9%. Sales at or above the list price came in at a near record 34.7%. This is the fifth week in a row where over one third of condos in the 416 sold at or above the list price. The statistic becomes more interesting when you look at the central core versus the east and west parts of the city. The central core has more choice but traditionally smaller suite sizes yet a full 33% of them are selling in multiple offers while the east and west sections, with less supply but bigger suites are attracting a much more robust 47% rate of sales at or above the list price. This is most likely due to a higher number of end-user purchases.

Here Are The Top Five Trending Stories Of The Week:



TORONTONIANS ARE PAYING THE HIGHEST PRICE TO LIVE THE URBAN DREAM

In 1898, the Toronto Publishing Company put out a social study of the youngish city by the lake. In Of Toronto the Good: The Queen City of Canada As It Is, author C.S. Clark marvels at the extravagant price being asked for a house on Charles Street. It was “not by any means a new house,” then fetching just $16 a month in rent; yet, a real estate agent had the temerity to demand $3,200 for it.




CAN OTTAWA DO ANYTHING TO COOL DOWN THE HOUSING MARKET?

Finance Minister Bill Morneau says the government is monitoring rapidly rising home prices in Vancouver and Toronto, but one money manager says there's little Ottawa can do to cool these red-hot housing markets.



TWO-THIRDS OF MILLENNIALS EXPECT TO AFFORD A TORONTO-AREA HOME, STUDY SUGGESTS

Toronto’s hot housing market hasn’t torched the home ownership dreams of first-time buyers. About two-thirds of millennials in the Toronto area expect to own their own home, according to a survey by Pollara for Bank of Montreal being released Wednesday. That’s despite a higher average purchase price of $465,000 in Toronto, compared to the $350,000 national average.




TORONTO CONDO RENTS JUMP, DRIVEN BY HIGHER PRICES

Rising prices for condominiums in the Greater Toronto Area are pushing rents higher and spurring development, a real estate consulting firm said Thursday. Toronto-based Urbanation said the average rental price for a condo in the first three months of 2016 in the Greater Toronto Area was up almost seven per cent when compared to the same time frame last year.



ANOTHER RECORD-BREAKING MONTH FOR HOUSING AS SPRING SEASON HEATS UP

Temperatures aren’t the only thing on the rise this spring. Housing markets in Toronto and Vancouver are on track to continue their record-breaking hot-streak.