Toronto Real Estate Market Watch 07/19
We are well into the summer months now, with August just around the corner and the fall market on the horizon. Yet, due to the delay of the spring market – from the harsh winter of this year – this past June still felt the effects of a VERY strong May. For those who have been hoping for home prices to have a substantial dip in price after months of stabilization, the reality is, homes are continuing to increase in value.
The price increase is a direct result of the market making a rebound after its 2017 slump. Increased interest rates, the introduction of the foreign buyer’s tax, and stricter mortgage rules helped cool the market, but also discouraged people from buying. However, Toronto home sales are picking back up this year. Re-sale home transactions in June were up by 10.4% with 8,860 property transactions, and the combination of rising sales and fewer active listings helped lift the average selling price of all home types 3% to $832,703 from last June.
Most notably, bidding wars are back. We are seeing a ton of action on our properties, with some of our homes getting a dozen offers on offer day. We are seeing them specifically in areas that have scarce supply, or on properties that range between the $900k-$1.3mil in prime areas, especially if they are a semi-detached. We can’t stress enough how HOT semis are right now, with young families looking to make affordable moves for their family without breaking the bank. There’s no denying it, a LOT of people want to live in Toronto, and badly!
Some good news for would be buyers, the Bank of Canada dropped the mortgage rate from 5.34% to 5.19%, marking the first decline in three years. This has given some prospective buyers new hope as the decreased rate makes qualifying for a mortgage a little easier, despite the rise in prices.
What Our Agents Are Saying….
A Focus on the Triangle
The beach triangle has seen a lot of activity so far in 2019. In the past 45 days alone, 2 out of the top three highest sales have transacted in the neighbourhood. Long loved by those who live there, this pocket of roughly 350 homes has stepped out of the shadows, and is no longer a secret to home buyers looking in the Kingston, Woodbine, & Queen area. Known for its strong sense of community (Dixon is often home to impromptu road hockey games), access to the best of the beach amenities, and its ease of exit (no battling Queen or Kingston rush hour traffic) The Triangle checks a lot of the boxes on potential home buyers wish lists.
The Beach triangle has, in the past, been a notoriously difficult neighbourhood to price homes in. This can be attributed to a lack of available comparable properties, (for in the past twelve months there have only been 6 total detached home sales in the hood, and they have all come in the last two months) as well as a lack of high priced sales. There had only been one sale over $2,000,000 until May of this year, where both 80 Dixon and 28 Columbine sold over that mark.
We have actively been involved in this surge of activity in the neighbourhood, and have seen first hand the high level of demand that exists. Our sale at 28 Columbine in May saw over 25 agent showings booked, almost 50 people through the open house, and with a list price of $2,479,000, five offers resulting in a sale price of $2,657,000 (setting the new price record in the triangle by over half a million dollars). Similarly, our listing at 40 Lockwood that sold had over 30 agent showings, 40 open house visitors, and three offers resulting in a sale of $1,900,000 (over $3,000,000 more than the list price). Each listing was prepared by our design and client care team, and staged by our incredible staging manager, Bianca, using furniture from our own warehouse. If you live in the triangle are curious to start a conversation about how these sales have improved the value of your home, please email us at firstname.lastname@example.org or call 416-699-0303 to get the conversation started!