In 2019, the largest cohort of millenials will be turning 29, entering peak home-buying age and contributing to the massive increase in first-time home buyer demand! This and more information in the week's breakdown below, courtesy of our parent brokerage, Bosley Real Estate!
We are almost a month into 2019 and it feels like the Toronto real estate market is getting a fresh start. As we enter a more balanced market, the discussion is still about the lack of inventory. We are all watching for signals that buyer sentiment will heat up. In recent months home price growth has faltered, mortgage rates have risen to their highest point in nearly eight years, and favor has started to shift from seller to buyer.
The long-term prospects for housing are good because demographics are going to continue to support demand. The largest cohort of millennials will be turning 29 this year entering peak home-buying age and contributing to the increase in first-time home buyer demand. Older millennial move-up buyers will have more options in the mid to upper price point and will make up the majority of millennials who close in 2019. Toronto’s housing market might be in an uneven slump, but experts are saying don’t expect a major decrease in house prices, because the city is seeing accelerated growth in its adult population which will keep the market humming!
The freehold market is starting to build up some steam. We are starting to see an uptick in new listings and a surprising amount listed above $3 million. Buyers are circling and they are willing to move quickly when they see a property that ticks all the right boxes. In the resale condo market, we saw a small 12% increase in new listings from the prior week while sales were up a whopping 68%, and of those sales more than 50% sold at or above the asking price which is a solid indicator that the condo market is trading well.
*Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto, Niagara-on-the-Lake 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.
HERE ARE THE TOP FIVE TRENDING STORIES OF THE PAST WEEK:
Ottawa should tweak mortgage stress test before election: Report
“The federal government should tweak Canada’s year-old mortgage stress test now, rather than waiting for the heat of the October election when housing affordability will almost certainly be a leading issue, says the author of a report released Wednesday by Mortgage Professionals Canada.”
Affordable Housing For Millennials Key To Federal Housing Plan: Bill Morneau
“The Trudeau government is looking for ways to make home-buying more affordable for millennials, Finance Minister Bill Morneau said Tuesday as he held pre-budget public events in the Toronto suburbs.”
Vancouver now ranked ‘second-least affordable’ global housing market
“Having been ranked in third place for three years running (after Hong Kong and Sydney, Australia), Vancouver has the dubious honour of displacing Sydney to return to second place in the 2019 chart. Hong Kong remains top of the list for the ninth year in a row.”
Toronto Real Estate Demand Slips Lower, BC Real Estate Demand Plummets
“Canadian real estate listings are facing more competition, and less sales. Canadian Real Estate Association (CREA) numbers show the sales to new listings ratio (SNLR) fell across the country in December. The indicator, used as a proxy for demand, showed deterioration in all but 3 major markets.”
Richmond man accused of cleaning millions of dollars through real estate
“A Richmond man connected to one of B.C.’s biggest ever money-laundering probes has been accused in a law suit of cleaning millions of dollars through local real estate deals.”
Last weeks round up:
Steven Fudge, Sales Representative
& The Innovative Urbaneer Team
Bosley Real Estate Ltd., Brokerage - (416) 322-8000
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