MARKET UPDATE FOR THE WEEK ENDING JULY 22ND, 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 JULY 22ND, 2016

  • Bosley Real Estate
  • 22 July 2016

For the first time in a very long while, it seems like real estate talk around the city has died down. Maybe that’s a good thing for buyers longing for a little distraction from the frenzy. And if distraction is what you are looking for, well there’s the US election, Blue Jays baseball and hunting for the elusive Pokemon that are popping up everywhere. Just to be clear though, Toronto real estate is as hot as the weather with no end in sight.

Listings in the freehold sector backed off by a substantial 15% over the last week while sales fell by just slightly less (13%). With buyers still longing for a place to call home it’s no wonder that with fewer homes, competition increased as 70.3% of transactions in the 416 were in multiple offers. It is interesting to note that in the same week one year ago, only 54% of transactions in the freehold sector had multiple offers. As far as we are concerned tight supply, pent-up demand and historically low interest rates will be the key drivers of our market over the foreseeable future.

And if you thought the freehold sector was frustrating for buyers, welcome to the new world of condo buying in Toronto. It’s true that new listings are down by 10.4% to 536 units across the 416, but sales only backed off a marginal 4.6%. Demand has remained high all year forcing multiple offers to reach 51.5% last week. That shatters the previous record by nearly 7%. If you want to truly understand the pressures that buyers are under in this segment, consider that one year ago only 18% of all condos traded sold at or above the list price.

Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto, Niagara-on-the-Lake and Jordan, 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 report on the true temperature of the real estate market.

Here Are The Top Five Trending Stories Of The Week:



HOW THE CRA IS CRACKING DOWN ON NON-COMPLIANCE IN CANADA’S HOTTEST HOUSING MARKETS

With the red-hot residential real estate markets of Toronto and Vancouver showing no signs of cooling down, taxpayers need to be aware that the Canada Revenue Agency is paying even closer attention to tax compliance in this sector. While transactions in the Greater Toronto Area have so far been the subject of greater scrutiny, including audits, the CRA has recently been actively monitoring and auditing real estate transactions in British Columbia.




DOWNTOWN TORONTO OFFICE VACANCY RATE LOWEST IN NORTH AMERICA, REAL ESTATE FIRM SAYS

Just a few short years ago, real estate experts were warning that Toronto was building far too much office space downtown, but observers are changing their tune now that the latest rental figures show the city has the lowest office vacancy rate of any major centre on the continent.



CMHC SEES NO 1980S STYLE HOUSING BUBBLE IN TORONTO HIGH-RISE CONDO MARKET

Canada Mortgage and Housing Corp. sees very limited speculation in the condominium industry in Toronto among builders, a situation unlike the 1980s when the market crashed.




RISK OF SPECULATION IN TORONTO CONDOS MITIGATED BY PRESALES: CMHC

Most Toronto condominium projects do not begin construction until 70 per cent of units are sold, curbing the risk of speculation, Canada’s housing agency said on Tuesday in a report that suggested overbuilding fears may be overdone.



NEW B.C. REAL ESTATE LEVY ON FOREIGN BUYERS ‘RIDICULOUS’, SAYS REALTOR

(See video)