In my Part One of my Winter 2017/2018 Toronto Real Estate Forecast I explored how globalization, foreign ownership and the general shifting of wealth in Toronto is shifting the dynamics and affordability of Toronto. In Part Two, I delved into the impact of demographics, government intervention, and the continued role of the condominium market as it shifts our real estate landscape. If you're engaged in any way in the Toronto real estate market, they're pretty comprehensive macro overviews. However, I think it's important to periodically share what's happening in media, so here's a breakdown of the week's key headlines, courtesy of our parent brokerage, Bosley Real Estate!
At this point in the year we should be gearing up for the spring market, but we just aren't feeling it yet. The consensus is we are a month behind other years. Like most of this year we are struggling with low inventories, a situation that has many puzzled. The pent up demand is evident. Walk into any open house on the weekend and see if you can find empty space on the floor to leave your shoes. The overall number of sales is beginning to perk up, but the action is still far below where it was at this time last year.
The number of new listings continued to contract last week but that could be because of the family day holiday. 25 percent fewer listings week over week created increased competition with 35 percent more sold properties and of those, 60 percent sold over the asking price. The price range between $700K and $1.5K was the most active last week with 68 percent more properties sold and of those 63 percent sold over asking.
A similar market exists in the resale condo sector. Listings were off last week by 15 percent while sales were up 21 percent week over week. And of those sales 47 percent sold at or above the asking price. The condo market has been traditionally reserved for first time buyers, but as freehold home ownership becomes less affordable we expect even more activity in the condo market.
*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:
Toronto remains a strong real estate investment magnet
“The Toronto region posted its seventh year of record commercial-property sales and there’s still room to rally as a buoyant economy leads to surging demand for everything from hotels to offices, according to Altus Group Ltd.”
Canadian Banks Are About To Make Things Much Harder For Foreign Buyers
“Better Dwelling: Foreign buyers just got one of the most aggressive hurdles when buying Canadian real estate. The Canadian Imperial Bank of Commerce (CIBC) quietly notified its mortgage advisors the "Foreign Income Program" has ended. The program was replaced on February 1, 2018, with a new program designed to ensure compliance with B-20 guidelines from OSFI. This change will have a drastic impact on those that use foreign income to qualify for a mortgage, from one of Canada's largest banks.”
Canadian home prices rise as Toronto sees first gain in 6 months
“The Canadian real estate market got off to a good start this year with house prices rising in January, as Toronto saw its first gain in six months, according to a bank measurement.”
Canadians borrowing against their houses at the fastest pace in years, data shows
“Canadians are borrowing against their houses at the fastest pace in more than five years, as home equity lines of credit (HELOCs) emerge as a preferred means of accessing funds.”
Housing crunch could drain Toronto talent pool
“If the Toronto region is going to attract and retain top talent, the province needs to fix the area’s housing shortage, in part by revising its recently expanded rent controls, says the Toronto Region Board of Trade.”
Missed this month's previous round ups?
Steven Fudge, Sales Representative
& The Innovative Urbaneer Team
Bosley Real Estate Ltd., Brokerage - (416) 322-8000
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