Are we having a lackluster real estate market? Some of us might think that, but a house on Major Street in Toronto was listed for $999,000 and the other day received 20 offers and sold for $1,958,000! ! Yes, that's right 196% over the asking price. And then we scratch our heads wondering why some properties only get one offer, or no offers or rival bids but still get below asking? None of us have the answer why this is happening. Certain niche neighbourhoods and special properties are defying all odds. It's been an unpredictable market so far and now that summer has arrived, and the election is over it doesn't look like a slow down just yet.
Hard to believe we are almost half way through 2018. If that thought is depressing just psych yourself up for the best is yet to come. Sunshine and heat waves are in our future for the next few months, but are there signs that Toronto's real estate market has backed off slightly from the frantic pace that was the Spring market? Inventory levels are becoming a concern, particularly in the City of Toronto. The number of new listings this year compared to last year is 25% less, and that represents a pattern that has been emerging. Declining inventory will lead to rising prices and active competition for good properties in desirable neighbourhoods. We know the market is different this year but as the old saying goes .... nothing is as constant as change.
The gardens are lush in Toronto, but real estate listings do not appear to be flourishing. That seems to be what agents are complaining about these days. Residential sales volume last month fell 21% in the City of Toronto, compared with May 2017. The decline in listings is helping keep prices stable despite weak sales. The average house price is still on the rise, but we saw a very small dip last month. Indications are emerging that there is increasing competition and bidding wars for available homes, which generally leads to a price increase. If you were thinking of buying in January and are still looking you will have to pay $100,000 more now!