Last week we waited in anticipation for an advanced weather prediction from nothing less than a couple of famous rodents. Ground Hog Day was a split decision but it made us wonder if we could use a similar technique for predicting the exact moment the spring market hits. Our suggestion is to put a green bin out on the sidewalk to see how the local racoons react. A knocked over bin indicates the spring market has started but if it’s frozen to the ground we have to wait another two weeks. Thoughts?
In the freehold resale market there is a strong indication that spring has sprung. Last week listings were up 54% from the previous week while sales climbed 40%. Typical of a sudden jump in new listings there is a lag of about a week before we see an uptick in sales. This is mainly due to the holdback period. While only 49% of existing homes sold at or above the list price we expect that percentage to improve significantly over the coming weeks. While the hottest area has been the east core, particularly in the mid-range price point, last week it was the west core that was the star with over 65% of properties sold at or above the list price.
The condominium sector may end up being the shining light of Toronto’s real estate market. Last week, new listings edged up 15% (almost entirely from the central core) while the number of sales improved by a remarkable 40%. What is more interesting is that sales of suites at or above the list price rose from an already healthy 22.4% to a near all-time high of 28.9%. In both the east and west core of the city, there were almost as many sales as new listings. (35 to 37 units).