Knock-knock. Who's there? Scarce listings. Scarce listings who? Scarce listings are causing multiple offers and sharp price increases. Ok, so we are missing the usual snappy opening this week but the lack of available listings has us, and our buyer clients, in a bit of a bad mood. Even with near record low inventory levels, sales have been extremely brisk. The frenzy of activity isn't just localized in the downtown core either. As the Globe and Mail recently reported, suburban homes across the GTA are experiencing a similar fate. The trifecta of low interest rates, strong employment and immigration are driving accelerated price growth across the region. As the Globe reports 'nearly half of all job growth and 75% of immigration' is happening in the 905.
Available freehold listings dropped 35% last week, falling to a 3 week low. Sales however have remained strong, improving by 7.8%. Fewer homes on the market and strong demand has led to a 10% increase in multiple offers over the week, to 69.3%. This was most noticeable in the $700k to $1.5m price range in the east and west core where a remarkable 90% of homes sold over asking. Our view is that month over month price gains will continue to cruise at double digit rates for the foreseeable future.
We believe that the condo sector may have finally come to the realization that its value lies more with end users who were unable to buy freehold homes. Despite an almost 16% decline in listings across the 416, sales have continued to strengthen registering a 3% increase over the previous week. The outstanding factor that proves the condo market's health has to be the percentage of sales at or above the list price, currently sitting at 34%, the highest percentage ever.