Hard to believe we are almost half way through 2018. If that thought is depressing just psych yourself up for the best is yet to come. Sunshine and heat waves are in our future for the next few months, but are there signs that Toronto’s real estate market has backed off slightly from the frantic pace that was the Spring market? Inventory levels are becoming a concern, particularly in the City of Toronto. The number of new listings this year compared to last year is 25% less, and that represents a pattern that has been emerging. Declining inventory will lead to rising prices and active competition for good properties in desirable neighbourhoods. We know the market is different this year but as the old saying goes …. nothing is as constant as change.
Case in point, the number of new freehold listings was up by 10% but the number of sales last week were down by 16%. With more listings coming to market why are we not seeing the sales? Are we seeing buyer fatigue already? The price range of $700 to $1.SM is again the most popular price range. Of the 92 properties that sold in that price range, 65 of them sold at or above the asking price. That’s 62%!
Similar to the freehold market, the number of new condo listings was up by 12% last week and the number of sales were down by 10%. The hottest price point last week was the $400K-$700K sector in the central core where 58% of the condos sold at or above the list price. This is a strong indicator that the condo market is extremely healthy.