Are we having a lackluster real estate market? Some of us might think that, but a house on Major Street in Toronto was listed for $999,000 and the other day received 20 offers and sold for $1,958,000! ! Yes, that’s right 196% over the asking price. And then we scratch our heads wondering why some properties only get one offer, or no offers or rival bids but still get below asking? None of us have the answer why this is happening. Certain niche neighbourhoods and special properties are defying all odds. It’s been an unpredictable market so far and now that summer has arrived, and the election is over it doesn’t look like a slow down just yet.
Last week in the freehold market we saw 236 new listings, a very small 6% increase compared to the week before at 220 listings. As we approach Canada day, new listings will drop off as it always happens when there is an upcoming holiday. There was no change with the number of sold properties from the prior week but in the central core 63% of properties sold above the asking price, and once again in the east end (Riverdale & Leslieville) of the 51 properties that sold, 41 or 80% sold at or above the asking price.
Like the freehold market, the condominium sector is behaving in a similar manner. Virtually no change from the previous week with 332 new listings. For a second week in a row we seen a decline in sales by 13%. The key indicator of the condo market health has to be the percentage of suites selling at or above the list price. Last week that percentage was at a very encouraging 55% level.