MARKET UPDATE FOR THE WEEK ENDING MAY 12TH, 2017
In the eighties the world was introduced to a new toy known as the Rubik’s Cube. There ensued a massive uptake of the toy amongst the general population despite the fact that the only way most of us could actually solve the puzzle was to take the stickers off and put them back on so it appeared as though we had completed the Cube. Anytime something like the Rubik’s Cube comes around the question of Fad vs. Trend begins to be talked about. That same question has begun to be discussed about the Toronto real estate market and it is a question that we will only answer with time. The Rubik’s cube has become the bestselling puzzle of all time. I think we can declare that one a trend. As we head into the last holiday weekend of the spring season we will watch carefully to see how the market reacts when everyone is back to work on Tuesday. Have we witnessed a fad in our market or are we looking at the beginning of a trend?
The freehold market continued to see increases in inventory and declines in sales for the third straight week. New listings increased 9% over the previous week from 454 to 496. It is important to note when looking at those numbers that we have seen a marked increase in re-lists, those properties that were priced for a bidding war that did not come to be and have been put back on the market at a higher price. It has been reported that as many as 20% of new listings are actually re-lists from properties that did not sell the previous week. The drop in sales was again the exact opposite of new listings with sales dropping 10% over the previous week. The largest drop in sales was reported in the west end though it is interesting to note that 85% of all west end sales were above their list price compared to an average of 72% for the rest of our study area.
In the condo market we believe we are seeing a trend as the percentage of listings that sold above their advertised price again declined with 66% of all listings selling above their listed price. It is important to note that it appears the days of huge offer premiums above the list price for condos are likely over. While many sales are still achieving a mark above the list price the percentage above list price continues to decline. Condos saw a 5% increase in listings but for the first time in four weeks saw a decline in sales down 9% over the previous week.
Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto, Niagara-on-the-Lake, Jordan 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.