How did December 2016 perform?

It should come as no surprise that new listings, sales and active listings dropped o substantially in December. It is part of the usual winter market blip that we experience each year around this time. Included in the slowdown in activity are increases in the number of days on the market and the average selling price versus the list price. But December is an oddity of the Toronto market which has experienced tremendous suc- cess in 2016. Against all odds, such as a tightening of lending requirements, the Toronto Real Estate Board recorded 12,000 more sales than 2015, a nearly 12% increase in total homes sold. Remarkably this was achieved at the same time as recording a increase of over $100k on the average price of a home. According to TREB, the condo market was a major factor in sales volume growth and our own numbers bear witness to the demand in this sector.

OVERHEARD BUZZ

Despite a record year for property sales, supply of listings remained extremely tight. In fact, active listings by the end of December were at the lowest levels since 2002. This December there was more buyer activity in the 905 where 2662 freehold semis, detached and town homes sold in the 905 compared to just 836 in the 416. The condo market is still king in the downtown core with sales outnumbering the 905 by better than 3 to 1. New construction sales ended the year with new records. While inventory levels stayed consistent, the average price for a highrise condo is closing in at $500k while a lowrise property is just a shade lower than $1m. This is likely to continue in 2017 as we apply the old adage…they aren’t making any more land!

What Sold In November 2016

  • DETACHED HOMES – 307
  • SEMI-DETACHED – 184
  • ATTACHED/ ROWHOUSE – 58
  • CONDO APARTMENT – 867
  • CONDO TOWNHOME – 79
  • C0-OP/ CO-OWNERSHIP APARTMENT – 6

We are sure you are familiar with the old saying: “those that don’t learn from history are destined to repeat it”. Of course, we are talking about buyers. Last year at this time, many buyers decided to sit out the market over most of December only to pay the price in the new year. Losing out on multiple o ers takes its toll (it’s called buyer fatigue) but our advice is to keep up the pressure until the new year… chances are you will be happy you did. Last year prices shot up by double digits and have kept that pace all year long. While there are fewer homes on the market, the ones that are available have negotiating room. Meanwhile, the condo market continues to thrive as frustrated home buyers consider the condo alternative.

OVERHEARD BUZZ

The new mortgage rules have been in place for a few weeks now and they have pretty much everyone scratching their heads trying to gure it all out. The reality is that it will take a few months for the dust to settle. In the meantime, if you are planning on buying a home, talk to a mortgage broker early in the process. If you have bought already, we recommend you hightail it back to the bank to make sure everything is still in order. Right now it is hard to determine if the measures put in place are designed to slow the Toronto real estate market OR serve as a precautionary approach to protect the bank’s exposure to higher debt levels. Our thinking is that overly stringent lending practices saved our collective Canadian bacon during the US housing meltdown of 2008 so this round of mortgage rule changes, although painful at rst, will go a long way towards a healthier housing market.

MAY 13TH, 2016

It might be Friday the thirteenth, but this week the luck is all good, especially if you are a seller with a hot property to move. With the spring market in fully gear we are seeing a significant ramp up of new listings and, of course, the corresponding increase in sales. Inventory levels are still critically low which means that even those homes that would otherwise be considered “locationally challenged” are selling quickly.

The freehold market recorded a solid 15.7% increase in new listings last week. Normally we would say that this was just what the doctor ordered. Unfortunately, that increase was overshadowed by a nearly 19% increase in sales with a strong 79% selling at or above the list price, the highest level in 2016 so far. The majority of the new listing activity came in the central core, while the hottest area for sales was in the east with nearly 87% of homes selling at or above the list price.

The condo market had a spectacular week with a 6.4% increase in new listings, to 661, while sales rose by 8.9% to 318 suites. Nothing truly shows the pure strength of the condo market like the number of transactions that took place at or above the list price and last week we set a new record in the 416 recording a remarkable 37.4% of units sold. The hottest price point is the $700k to $1.5m across all core marketplaces which we recognize as a reaction to homebuyers being priced out of freehold homes.

Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto, Niagara-on-the-Lake and Jordan, 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 report on the true temperature of the real estate market.

HERE ARE THE TOP FIVE TRENDING STORIES OF THE WEEK:

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CMHC CONTINUES TO REDUCE ITS EXPOSURE TO THE HOUSING MARKET
Canada Mortgage and Housing Corp., the Crown corporation that controls a majority of the mortgage default insurance market in the country, continues to reduce its exposure to the housing market.

 

Ontario is creating new rules to curb sprawl and preserve green space, including regulations that would ensure denser, more walkable communities rather than suburban subdivisions.

ONTARIO SETTING NEW RULES TO END ERA OF SUBURBAN SPRAWL ACROSS GTA

The province is promising bold new moves to foster denser, more walkable communities with transit, while preserving green space.

Jobs

TORONTO, VANCOUVER ACCOUNT ‘FOR ALL OF THE JOB GROWTH IN CANADA’: BMO
The two hottest housing markets in Canada are also the fastest-growing job markets in the country, according to the Bank of Montreal. “Over the past year, Vancouver and Toronto accounted for all of the job growth in Canada,” BMO Chief Economist Douglas Porter wrote in an update sent to investors this week.

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CANADIAN LUXURY SALES NOW COMPETING ON WORLD CLASS LEVELS WITH TORONTO AND VANCOUVER ON THE RISE
Two Canadian cities have climbed into a top-10 list of markets for the most active luxury home sales as debate on the influence of foreign buyers continues to grow.

 

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TORONTO REAL ESTATE WILL CONTINUE TO DO ‘EXTREMELY WELL’, SAYS FORMER RBC CEO
Former Royal Bank of Canada CEO Gord Nixon is bullish on Toronto real estate. “I think real estate in Toronto is going to continue to do extremely well,” he told BNN in an interview prior to being inducted into the Canadian Business Hall of Fame at a ceremony in Toronto on Thursday night.


Bosley Real Estate Ltd., Brokerage, 
Toronto Real Estate firm independently owned & operated

APRIL 22ND, 2016

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We hate to add fuel to the flame of an already sizzling real estate market in Toronto, but if you aren`t keeping score on what`s been happening you are missing out on some very valuable information. For the last few years we`ve been keeping better track of the Toronto market than Sportsnet keeps track of Josh Donaldson`s batting average. But averages don`t tell the whole story…that`s where we come in. Giving you the lowdown based on the experiences of over 260 agents working in the 416!

Last week we reported that the number of new listings took a rather substantial dive. Well, this week listings are back up across the city by over 45% to 260 and are more in line with the previous few weeks. This is still well off the pace of last year`s 330 new listings. Not only is there a difference in the number of new listings but the makeup of those listings has changed dramatically too. Consider that we are recording a third fewer new listings in the entry level price range ($400k-$700k) while the number of $3m+ price range homes has increased by more than 25%. Sales have remained strong, lending further proof to the ongoing inventory issues. 75% of all homes sold in the 416 sold at or above the list price. Last year at this time we recorded a nearly identical number of sales yet with more choice there were fewer multiple offers, which aided in keeping the number of sold at or above the asking price to a more reasonable 68%.

Just 16% more suites came on line last week compared to a week earlier bringing availability levels to 637 units. While slightly off last year`s number of 707, the important statistic we are following is the number of sales. Last year we saw 260 sales with nearly 30% being sold at or above the list price. This year we have reached two new records; 318 units sold of which 35.8% sold at or above the list price.

Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto, Niagara-on-the-Lake and Jordan, 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 report on the true temperature of the real estate market.

HERE ARE THE TOP FIVE TRENDING STORIES OF THE WEEK:

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TORONTO’S HOUSING CRISIS IS ABOUT CHRONIC UNDERSUPPLY
I have been analyzing housing markets since 1982, but I’ve only been active in the market a few times. During those 34 years, I have lived in seven different homes and apartments. Now that I’m looking to buy a home in Toronto, what I see in the numbers is becoming personal.

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CANADA’S HOTTEST HOUSING MARKETS DRIVEN BY ‘FOMO’ (READ: PANIC BUYING)
Many would-be homebuyers in Canada’s hottest urban markets are rushing in to buy homes without knowing whether their finances can handle it, a new survey suggests.

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HOW TO OWN A HOME BEFORE YOU’RE 30, ACCORDING TO REAL ESTATE EXPERTS
Wanna make that studio apartment into a full-on house? Many ambitious renters in their 20s are aiming to become real-deal homeowners by the time they hit 30 years old. And you don’t have to be an overachiever in order to join them.

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CANADIANS CLOSE TO RETIREMENT GETTING TEMPTED TO SELL, NEW DATA SUGGESTS
A new poll commissioned by Re/Max suggests a majority of Canadians nearing retirement are thinking about selling their home so they can get access to the equity.

The price of a newly built detached home in the GTA has now surpassed the million-dollar mark. It's a key psychological barrier, observers say.

AVERAGE NEW GTA HOUSE TOPS $1M FOR FIRST TIME
The dream of a new detached house with a yard just passed the million-dollar mark in the Toronto area widening the gap between a starter condo and a place with a little more space.


Bosley Real Estate Ltd., Brokerage, 
Toronto Real Estate firm independently owned & operated