Last week we reported that the Spring real estate market is in full swing in Toronto now that the warmer weather has arrived. At our offices we’ve put away the salt bags, rolled up the winter mats and cleaned the windows. While Buyers heard us loud and clear, Sellers apparently didn’t get the memo as both the number of freehold and condo listings backed off last week. For now we are going to blame it on last week’s tequila hangover and Cinco de Mayo.
Freehold home listings retreated by a staggering 24% last week. This was one of the largest week-over-week decreases in a number of months with the biggest decrease in new listings happening in the central core’s $1.5m to $3m price range. Naturally this is not the news that buyers want to hear as they are still out there waiting to purchase. Need evidence? How about the fact that we witnessed a 16% increase in sales in the Toronto Core AND watched the sale-to-price ratio increase to 64.5%. Once again it is the first time buyer who is struggling. When we look at the $400k to $700k segment of the core market it is interesting to note that over 77% of homes traded at or above the asking price.
The condominium market continues its road to health again this week. After a brief spike last week, the number of new listings continues to fall. This week we recorded a 9% drop, in all price categories, of new listings across Toronto’s core. While sales decreased by 25% we were surprised to note that sales at or above the list price actually increased by nearly 4% to a near record yearly high. It is important to note that mid-priced condos (those in the $700k to $1.5m range) continue to be the condo sweet spot reserved for home buyers abandoning their hopes of buying a home with a backyard.