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.