Corinne McCabe , Broker

What’s up with Toronto’s real estate market? By all accounts, this is a different fall market than one we are used to. Listings are down by as much as 31.7% for freehold homes but are up by 6% in the condo sector compared to a year ago. Unit sales are tracking similarly year over year in both the condo and freehold sectors. In discussion with our sales agents it is clear that the single key factor responsible for low inventory levels rests on the upcoming federal election. While the outcome will certainly not have an immediate or significant impact on home values most sellers are simply waiting it out.  Our research indicates that buyers outnumber sellers by approximately 5 to 1 in the city’s core neighbourhoods.

As mentioned, freehold listings have backed off by about 12% from the previous week however sales are up by 13.5%. It is interesting to note however that the percentage of listings selling at or above the list price decreased slightly from 73% to 70.6%. Despite world turmoil, home demand remains stronger than the previous year when only 65% of homes sold at or above the asking price. While the east core has been consistently hot for most of the year, last week it was the west core that was the new champ as nearly 80% of homes were sold with buyer competition. 

The condo resale market has posted another exceptional week. Sales have been on an upward trajectory throughout the Fall market, climbing an additional 15% last week from 187 to 215 units. New listings are down 14% overall since the previous week despite a significant rise in entry level ($200k-$400k) condos in the downtown core. Condos sold at or above the list price hit a new all-time high percentage last week with 31.6% beating out the previous record of 30% set in late May of this year.

Two weeks ago we witnessed a tsunami of new listings in downtown Toronto but a relatively lackluster sales performance left us feeling kind of empty. We made the bold statement that perhaps the reason sales were so low was because most of the new listings were holding back offers until the following week. We bravely predicted that sales would spike dramatically soon after and we are happy to report that we were right on the money. We didn’t need a crystal ball; our prediction was based on a solid understanding of Toronto’s real estate market.

Freehold listings climbed another 24% last week as Sellers all across the city take advantage of continued strong demand for homes. This was particularly evident in the $1.5M + market throughout all core neighbourhoods where listings shot up over 250%. Sales outperformed with an overall increase of 310% over the previous week but sales of homes at or above the list price jumped to 73%, one of the highest levels since March of this year.  The east core was the shining star of the week where 87% of all homes sold over the asking price.

The resale condominium market is not showing any signs of slowing down. While listings throughout the core only increased by a nominal 3% it was the nearly 30% increase in sales that caught our eye. Overall, 22% of all condos across the downtown core sold at or above the list price. While the biggest gain in sales volume took place in the central part of the city it was the east and west cores that attracted the most buyers with nearly 50% of condos being 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 240 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.

And just like that, as if someone flipped a switch, the Fall market started. It seems like a repeat from last year. The signal is as clear as the Snowbird’s last flyby…a salute to the end of summer holidays and return to the high stresses of multiple offers. Agents are out preparing listings while contractors, painters, and stagers stand at the ready. Our offices are stocking up on coffee in preparation.

Listings are up. Not just a little. Last week we saw new listings double to just over 400. The largest increase took place in the east core where sellers took to the market in droves. New listings were up a remarkable 500% while calmer heads prevailed in the west with a more realistic 53% increase in listings. With all the new activity one would expect increased sales activity however it appears that all the new listings just gave buyers more choice. There is also a subtle factor that is often overlooked. In a response to low listing levels over the summer, most new listings have offer dates for the following week. This means that, if we are right, next week there will be a substantial spike in the number of sales in the core.  It will be interesting to see if we move the needle higher than the current 50% level for homes sold  at or above the list price.

The condo sector, still the shining star of Toronto’s real estate market, performed slightly better. Listings were up by a very reasonable 37% while sales backed off by only 22% from the week earlier. A full 16.5% of all sales happened at or above the list price. Still, our research indicates that condos located in more neighbourhood-y locations, particularly lofts,  continue to outperform large downtown towers. Clearly, buyers are making lifestyle choices and are willing to pay slightly more for something other than the sky-high experience.Sept

The Danforth East Arts Fair is fast approaching!  Bosley is sponsoring the event, and we have a booth, so make sure to put it in your calendars and drop by to say hello!

Free weekend alert. If you think your inner clock is out of whack, you are right. The holiday gods are making up for that ridiculously early Easter and giving us an extra week of summer. The real estate market woke up to this realization last week as well. After a quick uptick in listings and activity the market backed off to traditional summer levels. Our feeling is that there are a lot of last-minute trip takers out there doing their best to squeeze out a few more summer days.

Take for example the freehold sector. After a 10% jump in listings two weeks ago levels went down 20.7% last week. It is interesting to note however that sales across the downtown core jumped almost 40%. With large discrepancies in listing to sales the core is eating away at existing inventories which could create bigger demand in the fall. A further indicator of market strength is the number of sales at or above the list price. While dipping down from the previous week we are still at a healthy 55% for this reporting period.

In the condominium sector new listings have remained relatively unchanged over the last week while sales are down a little over 10% (from 200 units to 181 units).  Sales at or above the list price are currently at 16.6% which is a solid indicator that the condo market is trading well. In the central core we noted a significant increase in luxury condos coming to market last week while there was a decline in number of mid-priced listings ($400k to $700k).

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 240 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.