Corinne McCabe , Broker

We think it is safe to say that the Toronto real estate market is moving into uncharted waters these days. The go to response to the steady increase of prices has been the lack of listings, high demand and low borrowing costs. What has transpired are stories of multiple offers, wild bidding wars and many broken dreams. So, what should we expect as we move forward? Well, if there is any consolation, we are moving into the spring market and the usual increase in listings. 

Freehold listings across the 416 contracted another 38% this week. This continues a trend that has lasted several weeks already. More surprising is the fact that sales are nearly outnumbering listings by 2 to 1. As a result the number of homes selling at or above the list price has jumped over 7% (from 69.8% to 77.2%) in a week. In the central core, there were no listings below $700k and 20 over $3m. Sales of $3m homes are almost triple those below $700k. The east core continues to be a hot district where sales are outpacing new listings by a 3 to 1 margin.

The condo market has an equal share of heat this week as well. For the first time ever sales of existing suites has outpaced listings. While not as drastic as the freehold sector, it is evident that the contraction of listings (down a further 24% from the previous week) and an increase in sales (up 13.5%) is having an impact on pricing with over 71% of condos sold last week at or above the list price. The condo market has been traditionally reserved for first time buyers and downsizers but as freehold home ownership becomes less affordable we expect even more activity in this segment.

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

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The number of new freehold listings continued to contract last week while demand and sales remained virtually at the same level from the previous week. 26% fewer listings week over week created increased competition which resulted in an increase to 74% of available properties selling at or above the list price. With more sales than listings happening in the east and west core, and a near even ratio in the central core,  the current supply of properties sits at a mere 1.1 months. 

If you thought shifting your dreams of home ownership to the condo market would make life easier, be prepared for a little disappointment. Throughout 2016 we watched as competition for resale condos increase dramatically from about 16% of all condos selling at or above the list price at the beginning of the year to over 40% by December. January 2017 has not shown any relief. In fact, while last week’s numbers showed that 55% of condos sold in multiple offers, this week that numbwer has skyrocketed to 65% thanks in part to a 42% reduction in new resale condos coming to market.

The resale condo market is experiencing similarities to its freehold brother. New listings for the week are down nearly 50% to 189 across the 416 while sales have increased by nearly 30%. Tighter supply and more sales has constricted the market and now we are reporting a new record in terms of sales at or over the list price. While the percentage has been tracking higher all year, our research indicates we are now hovering at 55%. Clearly, we are in a seller’s market for condos in Toronto.

Just for the record, we don't use any alternative facts in our market updates. In fact, we swore an oath to accurately reflect the size of the market so that our clients could make informed decisions. No need to proclaim any national holidays in our honour, just know that when you hear it from us it's the real deal....nothing fake about what we report. We will continue to march on.

Listings in the freehold sector retracted significantly last week from 114 new listings two weeks ago to a mere 67 last week. Surprisingly, sales nearly doubled to 65 units over the same period. Less availability created a sharp rise in the number of homes selling at or over the list price (72%). Over the past few years we have not seen this level of activity until well into the spring market (usually April/May) before it falls, and remains below, the 70% point from around mid August.

The resale condo market is experiencing similarities to its freehold brother. New listings for the week are down nearly 50% to 189 across the 416 while sales have increased by nearly 30%. Tighter supply and more sales has constricted the market and now we are reporting a new record in terms of sales at or over the list price. While the percentage has been tracking higher all year our research indicates we are now hovering at 55%. Clearly we are in a seller's market for condos in Toronto.

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

Normally we aren't the superstitious types but if listings don't improve quickly we may be forced to throw salt over our shoulders, walk backwards under ladders or burn sage in our offices to break the spell. Generally speaking January is a slow month for new listings but demand is high and the weather has been kind so we were expecting a faster release of new properties on the market. Sellers and buyers alike might just be feeling the pinch of new mortgage rules and increased land transfer taxes.

Having the benefit of looking at the listing and sales figures exactly one year ago we do see some amazing similarities in the freehold market for the 416. Compared to last year, the number of sales and listings is nearly identical. Where they do diverge is in the number of sales at or over asking. 2017 is starting out much stronger with 46% of homes selling above the list price compared to 27% a year ago.

The resale condo market continues to flex its muscles in 2017. Listings are nearly half of what they were a year ago while sales are virtually the same. In addition, at the beginning of 2016 there was not a frenzy of condo buying. With lots of listings, people were taking their time to find the perfect condo. As a result less than 5% of condos sold at or above the list price. As 2016 unrolled we saw demand increase almost every month. 2017 is starting off stronger than ever with 45% of every condos sold trading at or above the list price.