Episode 118: Months of Inventory Still Signalling Seller’s Market in Most Urban Communities

We sold this house in the Leslieville area last night with 11 offers.
Many with six-figure bank drafts in hand, eager to lock up their new home.

Two weeks ago, I was able to get a buyer client $100K off the asking price of an East End home that wasn’t getting any action.

We have another listing that’s not getting the same level of attention, but then we sold this loft at the Candy factory in only a couple of days for a big number.

This is the market we’re in right now. Some properties are selling in heavy competition for big numbers, while others are sitting on the market longer than you’d expect.

Why?

Some say there’s no rhyme or reason.

But they’d be wrong.

Usually, I’d say it’s the turn key properties flying while the rougher properties are sitting. That’s sort of true. Why sort of? Well, there are many other turn-key properties that aren’t getting the same level of attention.

So why did our listing get so much action while others didn’t?

It was the right property, mixed with the right pricing strategy, combined with meticulous attention to detail when preparing the listing for market. There wasn’t a flaw in sight. And we had a legal basement apartment which was generating income.

My advice to anyone who’s renovating or building. Always put in a basement suite or at least a rough one in so a future owner can easily, and legally create a unit down there. The more separate the better. It’ll pay you back in spades when you’re ready to sell or refinance.

So many things have to be aligned right now for your property to achieve the same results. But let’s not get it twisted, this property would have likely sold for much more in Jan or Feb with this many offers. How much more? No clue.

How’s the market right now, and what does it all mean to you?

Buyers right now are having an easier time finding and actually purchasing the property of their dreams (unless they’re in the North Riverdale area which never seems to pay attention to what the rest of the market is doing)

But as a buyer, you should still be prepared for competition. And don’t be afraid of competition because you think the market is “down”, and don’t sleep on a great property because you think there’s further downward pressure. Things can change in a heartbeat in urban Toronto,

You should be buying right now.

For example, we had a drop in the supply in urban houses last week. If you’ve been following this blog, you know that when I see 3 weekly drops in a row, that usually signals a return to an aggressive seller’s market. So I’ll be keeping an eye on that.

Most communities added a little supply while a few key areas dropped. Again, the Kingston Rd corridor all the way up to Port Union continues to be undersupplied while the luxury market finally surpassed the 2 months of inventory barrier.

In fact, if you look at the numbers below, you’ll notice that many communities surpassed the 2 monthly of inventory barrier. But under 3 months is still a Seller’s market in some cases. If we get closer to 3 MoI then we’ve got something to talk about but I don’t see us getting there.

WE might for condos quickly but again, we’re seeing many Sellers not get the money they want and pull their properties off-market vs. fire sale’ing

It happened during Covid and it’ll happen again now during this uncertain interest rate environment.

Leaside, Birch Cliff, Kingston Rd Corridor, and Urban Houses are all under 2 MoI still. That’s a strong Seller’s market. Once Buyer sentiment strengthens, we’re going to see a ton more activity.

So Sellers, please be patient. If you don’t get your number today, just wait. You’ll get it down the road.

Just yesterday I advised a young couple to not sell. They need a specific number that just won’t happen in today’s market for their condo. We have too much supply in their area. But they understand and told me “Ara, you give us the green light and we’re good to go”

I love that level of trust. They know that I track this stuff and they’re waiting for my work.

Anyway, if you’re a seller, get in touch and we’ll talk about your place. Maybe we can go big or maybe we should wait. Either way, if you don’t have to sell, your property shouldn’t at the moment. Hold is the name of the game. It always is!

Anyway, this type of market requires more one-on-one attention, so please call/email/text, and we’ll talk through your specific situation.

That’s all I have for now. Any questions? Just reply to this email like you always do, and I’ll get right back to you!

Have a question about something you’ve seen another realtor post? Ask!
I guarantee you there will be more to the story.

Have a wonderful day, and don’t forget to share this. We have over 42,000 subscribers, and the list keeps growing. Thank you for that!

Don’t forget to follow us on Instagram and Facebook. We post some real-time stats on our channels you don’t want to miss. You can also catch up on my 2022 real estate forecast post here.

And, please find me on Twitter as I’ve been more active there these days.

That’s all for today; thanks so much for your energy and attention. If you want some clarity on the market and your specific situation, please DM, comment below or email Ara@thespringteam.ca.

Urban Markets: Downtown & Surrounding Areas
House Average Price: $1,654,758
House Median Price: $1,500,000
593 Active Listings
73 Firm Sales This Week
Months of Inventory (MoI) ~ 1.74
Average Days on Market ~ 8.260 DoM

Condo Average Price: $890,281
Condo Median Price: $785,000
1805 Active Listings
120 Firm Sales This Week
MoI ~ 2.06
Average Days on Market (DOM) ~ 12,52

Urban North: Rosedale, Deer Park, Moore Park, Forest Hill, & Lawrence Park
House Average Price: $3,312,235
House Median Price: $2,580,909
147 Active Listings
11 Firm Sales This Week
Months of Inventory (MoI) ~ 2.24
Average Days on Market ~ 14.75 DoM

Condo Average Price: $1,551,882
Condo Median Price: $1,480,000
213 Active Listings
17 Firm Sales This Week
MoI ~ 2.36
Average Days on Market ~ 21.47

Leaside, Davisville, Yonge & Eglinton
House Average Price: $2,496,469
House Median Price: $1,850,000
49 Active Listings
13 Firm Sales This Week
Months of Inventory (MoI) ~ 1.30
Average Days on Market ~ 6.69 DoM

Condo Average Price: $753,074
Condo Median Price: $702,000
161 Active Listings
12 Firm Sales This Week
MoI ~ 2.20
Average Days on Market ~ 15.25 DoM

Birch Cliff
House Average Price: $1,368,429
House Median Price: $1,020,000
29 Active Listings
7 Firm Sales This Week
Months of Inventory (MoI) ~ 1.38
Average Days on Market ~11.85 DoM

Kingston Rd Corridor to Highland Creek
House Average Price: $1,380,387
House Median Price: $1,275,000
71 Active Listings
15 Firm Sales This Week
Months of Inventory (MoI) ~ 1.33
Average Days on Market ~ 9 DoM

Condo Average Price: $591,429
Condo Median Price: $540,000
55 Active Listings
7 Firm Sales This Week
MoI ~ 1.82
Average Days on Market ~ 27.42 DoM

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