Corinne McCabe , Broker

Here we go. The Santa Claus Parade is the definitive Toronto tradition and if that didn`t signal the start of winter then this week`s little blast of cold air sure did. Despite the temperature drop there is no sign that the real estate market is slipping into hibernation just yet. We know there are many frustrated buyers out there but we would encourage them all to keep looking. If you are contemplating putting your buying intentions on hold you will pay the ultimate price when prices escalate in the Spring...just like they did last year.

The number of new listings in the freehold sector dropped by 9% last week to 220 units. Sales jumped by 15.2% in the 416 and activity was higher with 65.3% of homes trading at or above the list price. Surprisingly the number of sales is nearly identical to the same period last year however competition amongst buyers was not as fierce as only 49% of homes traded at or above the list price.

The resale condo market continues with its torrid pace. Listings last week increased by 3.4% and sales decreased by 3.1%. Despite a slight widening in the listing to sales gap competition for suites increased as nearly 50% of sold condos traded at or above the list price. One thing we have been noticing is the number of offers on larger suites has increased dramatically. While this piece of data is not generally reported, our company sells enough condos to have anecdotal data which shows that some condos are receiving as many as 6 offers and it is not surprising to see a suite sell above 110% of list price. 

Did you survive Trumpaggedon? Withstand Trumpocolypse? Whatever the side of the fence you stand on, at least on this side of the border, life as we know it hasn’t changed much over the last few weeks. And while we don’t yet know what a Trump presidency is going to look like yet, or how it will affect us here in the north, our hope is that reason and calm markets will prevail. So far so good.

The freehold sector did not see much change in the number of new listings last week; however sales dipped by about 38% from 173 the previous week to 125. This drop is consistent with declines in sales over previous years and is more a statement of the approaching winter market than uneasiness in the US federal election outcome and continued adapting of the new Canadian mortgage rules which are likely only playing a small role. Still, sentiment for home ownership remains strong as nearly 65% of home transactions in the 416 sold at or above the asking price.

If you thought living in a condo was just a passing fancy...you were wrong. The condominium market is having a hard time keeping up to demand. Compared to last year at this time new condo listings are down 20% while sales are up 30%. If you think those numbers are exciting, consider that nearly 45% of transactions are happening at or above the list price compared to a mere 20% last year.

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

Inquiring minds want to know if the new mortgage rules are having an impact on housing activity in Toronto. Frankly we are as curious as the next guy but as it stands now we have not seen much change. Overall activity in the 416 continues to be strong as demonstrated by rising prices across every category of shelter. For the first time, affordability in the rental sector is raising concerns as the average price of a one bedroom condo increased by over 7% in the 3rd quarter of 2016.

Tight supply in the freehold market has been the ongoing story for the last few years. Consider that we have 63% fewer listings than the same period last year yet only 15% fewer sales. The net result is more sales happening above the list price (66.5% in 2016 compared to 55% in 2015). We will certainly witness a decline in resale listings over the next 2 months as we cruise into the winter season but it remains unclear if sales will drop in a corresponding fashion. The east core was the hot spot last week as 84% of all homes sold above the list price compared to 62% in the west core and 58% in the central core.

The condo sector held steady in terms of new resale listings as the number of available suites dropped a marginal 3.5% to 384 units. Sales were virtually unchanged from the previous week however there seems to be a slight uptick in demand as the number of units sold at or above the list price hit 49.8%, a new record for Toronto. Last week the hot spot of the market was reserved for the entry level segment ($200k-$400k) where a remarkable 66% of all condos sold at or above the list price.