Urban Markets: Downtown & Surrounding Areas
There has been an unbelievable jump in condo sales in Toronto’s urban communities while supply struggles to keep up.

But the real story of the day is pre-construction condos as they continue to break record after record.

Downtown new condo launches are fetching upwards of $1700 per square foot for prime units and bottoming out at around $1300/PSF for the less desirable or larger units.

There seems to be roughly a 15-30% premium for pre-construction condos right now.

Why?

A super-accessible deposit structure (15% over 3 years) and an incredibly bullish outlook on the future of urban Toronto real estate.

Are you not as bullish? I’d love to hear why.

Because all signs are pointing to Toronto as the darling of the global real estate market (if there is such a thing) and most of this activity is driven by local demand. Most of the talk by the minority liberal government discussing their efforts to help “cool” the market (which is impossible and a giant waste of time) doesn’t seem to be affecting buyers.

Any effort to tax the gain on your principal residence (which many liberal hating cons and ppc voters loved shouting from the rooftops) is completely not true and if it does indeed come into play will have a ton of exemptions and will further limit supply causing a massive spike in prices once again.

Anyway, long story short, betting on the Toronto market long-term will create winners 100% of the time. Focussing on short-term dips and doodles in the market and claiming “see I told ya real estate doesn’t always go up” is a loser’s game.

Nobody is saying real estate always goes up. Buy all the real estate you can and hold it till you’re ready to retire. Then simply retire comfortably. There’s no easier way.

If you’re a house buyer right now you have no choice but to be flexible. Inventory is very tight and each home is selling for more than its previous comparable.

Same for condo buyers, Supply is keeping up so you may have an easier time than buying houses but if these sales continue to power through…supply will dwindle.

House Average Price: $1,742,39
House Median Price: $1,559,884
480 Active Listings
94 Firm Sales This Week
Months of Inventory (MoI) ~ 0.79
Average Days on Market ~ 7.6 DoM

Condo Average Price: $856,487
Condo Median Price: $730,000
1438 Active Listings
212 Firm Sales This Week
MoI ~ 1.32
Average Days on Market (DOM) ~ 17.6

Urban North: Rosedale, Deer Park, Moore Park, Forest Hill, & Lawrence Park
House sales are up 100% here and at all pride points.

From 3 million to 10 million all sold within 7 days further proving that it’s not just entry-level buyers and sellers fueling this market Money is flowing at all levels and supply is a problem at all levels.

It’s nice to see supply up here but there are too many fully funded buyers waiting for their turn.

Still, lots of room for new listing inventory here so bring it on!

House Average Price: $3,631,158
House Median Price: $2,935,000
136 Active Listing
24 Firm Sales This Week
Months of Inventory (MoI) ~ 1.04

Condo Average Price: $1,309,330
Condo Median Price: $1,115,000
237 Active Listings
27 Firm Sales This Week
MoI ~ 2.53

Leaside, Davisville, Yonge & Eglinton
I’d watch condo supply here as we haven’t seen the supply being replenished like other condo communities. ONly adding one unit this week while sales are maintaining their course.

Buyers have a relatively easy time here but I see that changing as condo supply becomes an issue. We’ll see what the MoI figures look like in next week’s report.

It’s nice to see some new houses added to shelves here but not nearly enough to satisfy demand. As I’ve said over and over, Leaside and surrounding communities are the 2nd most undersupplied next to Birch Cliff

There just isn’t the pressure to sell here. Most of the buyers here are move-up buyers from smaller urban homes.

House Average Price: $1,955,573
House Median Price: $1,752,718
36 Active Listings
6 Firm Sales This Week
Months of Inventory (MoI) ~ 0.53

Condo Average Price: $757,385
Condo Median Price: $695,000
136 Active Listings
13 Firm Sales This Week
MoI ~ 1.58

Birch Cliff
Only one house sale to report this week although inventory was up a little. Most of the supply is waiting on offer day and will be reported next week so just wait to see those numbers.

Don’t pay any attention to averages this week here…for both condos and houses.

A bit of a non-report for this community as there’s basically no sales activity.

Next week should be more exciting

House Average Price: $1,375,000
House Median Price: $1,375,000
15 Active Listings
1 Firm Sales This Week
Months of Inventory (MoI) ~ 0.50

Condo Average Price: $780,000
Condo Median Price: $780,000
8 Active Listings
1 Firm Sales This Week
MoI 1.75

Thanks so much for your energy and attention! If you need clarity on any of this or want to talk about your specific situation, then call/text/email anytime: ara@thespringteam.ca or 416-434-1511

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