Hard to believe we are half way through 2015 already. If that thought is depressing, don’t forget that the best is yet to come. Sunshine and heat waves are in our future and while still sizzling, there are signs that Toronto’s real estate market has backed off from the frantic pace that was the Spring market. That should come as some relief to those sitting on the sidelines waiting for the right time to purchase a new home.
The freehold market has reversed its month long trend by recording nearly 11% fewer listings last week. Sales followed suit registering almost 15% fewer transactions and the percentage of homes selling at or above the list price was a more reasonable 67.7% compared to 72% a month ago. Clearly the effect of less product is not causing increased bidding wars. Sales of freehold homes continues to be robust but there is less urgency in the market. The hotspots last week were the east and west cores of the city where nearly 80% of entry level homes ($400K-$700K) sold in multiple offers.
Last week the condo sector increased new listings by nearly 11%, one of its largest increases this year. Sales however backed off by a marginal 6%. The end result of more listings and fewer sales meant that the number of suites selling in multiple offers also backed off to 24%. This is still a solid number and a strong indicator that the condo market is extremely healthy. This week the hotspot has shifted west where nearly half of condos sold in the west core sold in multiple offers.