The statistics released by the Canadian Real Estate Association for January are a bit conflicted, but generally indicate a slow beginning to 2018, with a need for more listings to balance the market. Here's a breakdown of the week's key headlines, courtesy of our parent brokerage, Bosley Real Estate!
The media likes to sell sob-stories to survive. The TREB market report was released this week and the news release in the media was all doom and gloom. Well not so in the City of Toronto. The average selling price at the end of January was $766,616, up 5.5 percent from a year ago which was $727, 928. The number of new listings came in at 2,776 for the end of January slightly lower than a year ago at 2,886. But when you factor in the surrounding GTA it skews the City of Toronto stats. The annual rate of growth in the City of Toronto was driven by the condominium market sector, which has had double-digit annual growth.
The freehold market is starting to build up some steam. We have seen a 20 percent increase in listings with the central core leading the way and the number of sold properties was up 15 percent and of those 30 percent sold over the asking price. Buyers are circling and they are willing to move quickly when they see a property that ticks all the right boxes. There seems to be an exuberance in the office this week and no doubt that the market is starting to take off.
The resale condo market is exhibiting some "freehold like" qualities. This week there were 30 percent more new listings to hit the market from the previous week but the number of sold condos was down 10 percent. Urbanation, a company that tracks the condo market released their annual report this week and the average price per square foot for a new condo is $1,031 and $823 for a resale condo. As many as 20,000 new units are expected to be delivered in 2018.
*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:
What can $500,000 get you in Toronto's property market? A one-bedroom condo half the size of a badminton court
“A half a million dollars bought half as much space in Toronto’s condominium market as in other Canadian cities in 2017.”
CMHC: A Quarter of Vancouver Real Estate Price Increases Can’t Be Explained
“Vancouver real estate is some of the priciest in the world, and people are struggling to figure out why. The Canada Mortgage And Housing Corporation (CMHC) studied major urban markets, and modeled where they should be. The government owned organization concludes that a quarter of Vancouver’s real estate price increases can’t actually be explained.”
Why Toronto real-estate agents are sounding the alarm over the city’s budget
“Today, the Executive Committee met to approve the final version of the preliminary budget, which will make its way to council next week. Conveniently, the Toronto Real Estate Board (TREB) also released its monthly roundup of GTA real estate stats. Included with the usual information — year-over-year changes in prices and sales —was a warning for Toronto city council.”
New Mortgage Rules Send Canadians Flocking To Alternative Lenders
“Mortgage brokers say the borrower rejection rate from large banks and traditional monoline mortgage lenders has gone up as much as 20 per cent after Canada's banking regulator imposed a new stress test for home buyers who don't need mortgage insurance.”
What tenants need to know about Ontario’s standardized lease agreement
“Ontarians fed up with battling their landlords over contentious terms they didn’t realize were hidden in the fine print of their lease will soon be getting some reprieve.”
Missed last week's round up?
Bosley’s Market Insight For The First Week Of February 2018
Steven Fudge, Sales Representative
& The Innovative Urbaneer Team
Bosley Real Estate Ltd., Brokerage - (416) 322-8000
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