Corinne McCabe , Broker

The Toronto Real Estate Board just released the market stats for October and we are seeing year-over-year increases in home sales and average sale prices. The average selling price for the GTA in October was $807,340 up by 3.5% compared to $780,400 in October 2017. For the City of Toronto the average sale price for October was $869,870 compared to $819,124 in October 2017 up by 6.3%!

“Annual sales growth has been positive since the late spring. While the stress test and higher borrowing costs have kept sales below 2016’s record pace, many households in the GTA remain upbeat on home ownership as a quality long-term investment.  strong regional economy and steady population growth will continue to support the demand for housing ownership as we move into 2O19” (TREB).

Even though listings were up in October 4.8% compared to October 2017, the freehold market last week saw 21% fewer listings from the week before. The net result is more sales happening at or above the list price which is 61% of properties sold. 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 decline.

The condominium sector stats for October were also stellar. The average condo price came in at $603,153 up 8.7% from October 2017 which was $555,004. Last week new condos coming to market dropped 20% from the previous week but sales increased by 8% in the downtown core and units selling at or above the list price are still at a staggering 50% of units sold!

Inquiring minds want to know if rising interest rates 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 multiple offers and rising prices across every category of shelter. Generally, mortgage rates tend to rise when the economy is growing, the job market is healthy and wages are rising. With two months left in 2018 there is still plenty of transactions on the horizon and our research shows there are plenty of buyers waiting for the perfect home.

The freehold sector did not see much change in the number of new listings last week. Tight supply has been the ongoing story for most of the year. The number of recorded sales however was only down by 11%. Homes trading at or above the list price is at a very respectable 53%, well within the range we have seen for a strong fall market.

The condo sector is experiencing similar traits and did not see an increase in new listings last week with only 293 listed. Though sales were down by 22%, overall sales activity remains brisk with 48% of condos selling at or above the asking price. The hot spot of the week was the $400k - $700k segment in the central core where more than 50% of the units sold at or above the list price.

Come November, we're firmly into fall but lately the real estate market feels like it's spring out there! Several crazy home sales happened last week including one in our office that had 26 offers and sold for 56% above the list price. One just has to look at the number of multiple offers to know that the demand is high. What's causing this excitement? Simple math ... pent up demand plus a lack of inventory. Also, the news of an interest rate hike, the third one this year has got some buyers motivated to get out there before they get shut out of the market.

New freehold listings increased slightly last week by 5 per cent but sales increased by a remarkable 50% week over week. While pre-emptive offers seem to be slowing down, 62% of properties sold at or above the asking price. The hottest area is still the east core where 73% of homes sold at or above the asking price.

The resale condominium sector is following the same trends. Available new listings increased by a marginal 3%, while sales increased a substantial 64% week over week. Nothing truly shows the pure strength of the condo market like the number of transactions that took place at or above the list price and last week in the 416 it was an exceptional 57% of units sold.

Countdown to Cannabis in Canada October 17th, 2018  Canada becomes the second largest country with a legal national marijuana marketplace. Uruguay launched legal sales last year, after several years of planning.  Many are speculating how the decision will affect society and the economy. We as realtors will see inquiries from our clients as to what the impact of legalization on real estate will be and how will it affect residential property markets. If we look at what is happening in Colorado, the results showed that single family homes situated within 0.1 mile of a recreational marijuana store experienced an increase of 8 per cent relative to homes farther away. Whether Canadians homeowners also see a high, remains to be seen!

In the freehold market new listings have eased off nearly 28% from last week. Almost the entire decline in new listings occurred in the central core. But the great news is sales were up 16%. With a shortage of listings and a big demand, a good indicator of market strength is the number of sales at or above the list price, which sits at a healthy 62% for this reporting period. 

In the condo market we also saw a modest decline in new listings, down 9% from the previous week. Despite the slight reduction in the number of sales, over 53% of units traded at or above the list price, which shows that buyers are out there, but inventory is low. Condominiums will face an increasingly complex array of issues with the new Cannabis Act. The impact will be far-reaching and will pose challenges for condos, as Toronto dwellers are eager to light up inside their homes, but they may see that dream go up in smoke!

Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto, Niagara-on-the-Lake, Port Hope and Cambridge 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.

Ah September. Just as we predicted, and the fall real estate market is off! The floodgates are open and new listings are finally coming to market. The question again is do you list low and create a bidding war or list at where you think it will sell? If you ask the agents you will get mixed reviews. But if you look at the statistics the way to go is to list low. A property in the west end that was listed for $899,000 sold in 2 days. They had over 80 booked showings and generated 4 bully offers and sold for $1,410,000! Was it priced too low? We say yes. So now that

house has set a precedent for pricing. It is encouraging to see a continued resurgence in the demand for ownership housing.

New listings in the freehold sector were up last week 15% from the week before, but the sold listings were up by an astonishing 127%. These were all the properties that had come on the market right after Labour Day. Supply and demand economics propelled 59% of sales sold at or above the list price. Not surprising, homes priced in the $700K to $1.SM range were in demand the most with 46 out of 69 homes selling over the asking price.

The condominium market performed similarly to the freehold market last week with only a 3% increase in new listings, to 275 units throughout the core. Sales improved by 73% from the previous week, and the activity continues to be strong with 55% of condos selling at or above the list price, and the majority of those sold were under $700,000.

No question this has been a hot, hot summer and some long periods of drought. The Toronto real estate market is also suffering through a long period of listing drought. "The annual rate of sales growth out-paced the annual rate of new listings. We only have slightly more than two-and-a-half months of inventory in the TREB market as a whole, and less than two months of inventory in the City of Toronto. This means that despite the fact the sales remain off the record highs from 2016 and 2017, many GTA neighbourhoods continue to suffer from lack of inventory. This could present a problem if demand continues to accelerate over the next year, which is expected. Jason Mercer- Director of market analysis TREB.

The good news out today from TREB were the monthly resale housing figures for August. In the GTA there were 6,839 sales reported in August- an 8.5% increase compared to August 2017. The average sale price for the City of Toronto was $785,223 - up by 8.4% from August 2017. Sales of detached homes in particular, continued to show signs of improvement after a week start to the year with a 12.3% jump in sales in the City of Toronto, to an average price of $1.244,275. The tight market conditions contributed to a strong August. The gains are a sign that buyers who were waiting on the sidelines have renewed their search for buying a home.

The condominium market which has been the region's strongest sector over the past months also rose 6.4% to an average price of $585,355 for the City of Toronto, but sales were down by 5.6%. After three months of continued growth the Toronto real estate market is signalling that that it's coming back to life after a weak first half of the year.

For most people the New Year starts January 1st, but for some others, teachers and realtors included, the day after Labour Day everything starts new on that day. We are heading to the start of the fall market and there seems to be quite a buzz about all the new listings ready to hit the market. Houses for sale in prime Toronto neighbourhoods are scarce these days. After a quick uptick in listings and activity the market has backed off to traditional summer levels. Agents are telling their sellers to wait until after the labour day weekend to list.

While price growth has been mostly evident in the city of Toronto so far this year, other regions still have a long way to recover from 2017.  (See link attachment.) As the summer winds down, we have nothing to complain about. It was one of the hottest we have experienced in some time.

In the freehold market we saw a slight dip of 22% in new listings week over week, while sales continued to hold steady. Low inventory levels are driving up prices and producing multiple offers in nearly 48% of home transactions last week. The condo market was the reverse with new listings holding steady but a 36% drop in sold units. Sales at or above the list price are currently at 36%, which is a solid indicator that the condo market is still trading well.

So, the battle is over and the Toronto Real Estate Board's request to appeal a dispute with the Competition Bureau has been declined by the Supreme Court of Canada. TREB has maintained that releasing the previous sold prices violates client privacy and its own copyright over the information. TREB will have 60 days to conform. TREB believes personal information of home buyers and sellers must continue to be safely used and disclosed in a manner that respects privacy interests and will be studying the required next steps. "By removing TREB's anti­competitive restrictions, home buyers and sellers in the GTA will now have greater access to information and innovative real estate services when making one of the most significant financial decisions of their lives." Commissioner Matthew Boswell

The Toronto real estate market is a little sleepy these days. With only two weekends left before its back to school, buyers are taking a time-out to enjoy what's left of summer. Agents say many homeowners are gearing up to list in September. Lots of potential sellers were discouraged from listing in the spring as buyers struggled with tighter mortgage rules and rising interest rates.

Last week in the freehold sector the number of new listings saw no change from the previous week, but there was a 33% increase in sold properties, and of those 41% sold at or above the asking price.

The resale condo market sector is following the same trends. New listings were the same as the previous week, but sales have climbed by nearly 45% and the number of condos sold at or above asking was still at still at a healthy 41%.

The dog days of August are upon us, but great news for the Toronto Real Estate market. The average sale price for the City of Toronto in July was $824,336, up 8% compared to July of last year which was $759,441. The positive results over the last two months are very encouraging. Toronto's housing market seems to be stabilizing from the federal government's tighter mortgage rules that came into effect in January. The scarcity of listings helps to keep prices firm. Buyers who were cautious are feeling a little more confident the market does not have further to fall. With all this encouraging good news it looks like we could be trending toward positive territory for the second half of 2018!

The freehold market recorded a 29% uptick in new listings last week. Most of the new listing activity was recorded in the central core, with 16 new listings priced above $3M and as high as $39M. Sales however took a tumble last week with 30% less sales then the week before. Clearly, people were thinking more about enjoying a cold beverage by the lake with the long weekend approaching, than buying a house. But having said that 53% of all homes sold, occurred at or above the asking price.

Condo market buyers and sellers expressed a similar sentiment. This seems in line with historical trends as we are now in the summer month of August. New listings were up 36% from a week earlier and the majority of the new listings were in the $400K to $700K price range once again. Though sales were down by 28%, overall sales activity remains brisk with 51% of condos selling at or above the asking price.