Week 153: 74% of Urban Toronto Houses Sold Over Asking Last Week

Echo chambers are dangerous places. Focussing on anomalies is equally as dangerous. Yet, that’s where we find ourselves regarding the real estate content available from traditional media channels to social content creators.

All highlighting whatever story speaks to their truth, and the audience claps along with reaffirming comments and messages.

But why is it so hard to focus on what’s happening without getting emotional about the dozens of possible outcomes, however unlikely?

Do we, humans, love drama so much that we put blinders on when the market speaks to us in a different language? A language that perhaps leads to a different truth than the narrative you’re being fed (or are dishing out)? (continued after chart)

Urban Markets: Downtown & Surrounding Areas
House Average Price: $1,482,584
House Median Price: $1,305,000
314 Active Listings
39 Firm Sales This Week
Months of Inventory (MoI) ~ 1.22 (up from 0.94 last month)
Average Days on Market ~ 16.54

Condo Average Price: $822,028
Condo Median Price: $680,000
1273 Active Listings
63 Firm Sales This Week
MoI ~ 2.16 (up from 1.81 last month)
Average Days on Market (DOM) ~ 28.13

Some astute agents and economists are optimistic about where the market is. And that’s what the data shows.

After a couple of weeks of increasing supply, we have two weeks of decreasing supply across the board.

The Kingston Rd corridor has overtaken the Leaside/Davisville area as the most undersupplied community in the GTA. By far.

You’re hearing of a LOT of bidding war situations again, especially for houses. I just went through each one of the 102 houses and condos sold in the urban communities of Toronto, and 32 sold for over the asking price with more than one offer. Most of them houses. Only 3 of the 32 were condos.

So 74% of the houses sold in Toronto’s urban communities sold in multiple offers well over the asking price. Tell me again, how us real estate REALISTS (notice how I didn’t say bull or bear?) making this up just to “create anxiety” and get buyers to buy for our benefit?  (continued after chart)

Urban North: Rosedale, Deer Park, Moore Park, Forest Hill, & Lawrence Park
House Average Price: $2,727,210
House Median Price: $2,750,000
90 Active Listings
9 Firm Sales This Week
MoI ~ 1.84 (up from 1.65 last month)
Average Days on Market ~ 27.11

Condo Average Price: $1,148,571
Condo Median Price: $900,000
173 Active Listings
7 Firm Sales This Week
MoI ~ 2.85 (up from 2.14 last month)
Average Days on Market ~ 13,29

Since March of 2022, when the market started to slow down, we haven’t seen this kind of buyer confidence.

So when a Spring Team agent talks to you about the market, this is the data behind our words. We have zero interest in creating a ton of FOMO, so you make a purchase. Our goal is to build relationships that last a lifetime. We want to be part of ALL of your and your family’s real estate dealings. That’s why we tell it like it is. Straight forward with no BS.

So where’s the market now, and where is it headed?

Today, if you’re a house buyer, there’s a good chance you’ll compete for that home. Your financing needs to be in order, and the deal that you expect to get is likely off the table.

Many sellers who had difficulty selling back in October through December are returning to market and getting their prices today. That’s a fact. And if you couldn’t sell for the price you wanted a few months ago, now’s the time to try again. Your experience will be different, I promise you.  (continued after chart)

Leaside, Davisville, Yonge & Eglinton
House Average Price: $1,627,500
House Median Price: $1,627,500
32 Active Listings
2 Firm Sales This Week
MoI ~ 1.11 (up from 0.75)
Average Days on Market ~3

Condo Average Price: $660,756
Condo Median Price: $650,000
104 Active Listings
6 Firm Sales This Week
MoI ~ 2.01 (up from 1.61 last mth)
Average Days on Market ~ 26.78

So the bottom of the market is confidently behind us.

However, there are economic uncertainties that can lull the market again. There’s a chance inflation will come in higher than expected when the numbers are reported this month.

There’s a chance that China will lock down again if they detect increasing Covid cases halting the production of goods the West can’t get enough of, making things more expensive again. And the list goes on. A successful agent today needs to be more globally aware than ever before. What about unemployment?

HUGE companies are cutting jobs, but as discussed in week 151, it’s a little less dramatic when put in the context of the massive number of jobs these companies have created over the past three years.

It’s not hard to see what’s coming if you understand how the market is influenced.

Markets don’t crash because a few pre-construction buyers, amplified by the news, are underwater on their purchases. You shouldn’t take that as a sign to “never invest in pre-con.” That’s just not a smart way to guide your investments.

So we’ll watch the World over the next month as we get closer to the next rate announcement on March 5th. That’s an important date. If there’s a halt in hikes, you’d better believe that’s when the fence-sitting buyers will get back on their horses.  (continued after chart)

Birch Cliff
House Average Price: $1,110,500
House Median Price: $1,110,500
13 Active Listings
2 Firm Sales This Week
Months of Inventory (MoI) ~ 0.74 (down from 0.89)
Average Days on Market ~ 31

That’s when things start to get more expensive again.

But we’ll have to wait and see what happens in March. If there’s another hike, then things will cool down again for a while. Regardless, we shouldn’t see aggressive gains this year either way.

Ultimately, rates are still higher, and buyers are shell-shocked. They saw what happened before and will be more cautious going forward.

But those waiting for another crash will have to continue to sit and wait while the realists are out making things happen.   (continued after chart)

Kingston Rd Corridor to Highland Creek
House Average Price: $1,416,833
House Median Price: $1,302,000
31 Active Listings
6 Firm Sales This Week
Months of Inventory (MoI) ~ 0.74 (up from 0.54)
Average Days on Market ~ 8.17

Condo Average Price: $567,483
Condo Median Price: $559,944
39 Active Listings
18 Firm Sales This Week
MoI ~ 1.81 (up from 1.63)
Average Days on Market ~ 16

Any questions? The entire team and I are here to help. Email/comment/text/smoke signal, and we’ll get back to you.

Have a wonderful day, and I’ll see you next week. Don’t forget to subscribe to the blog so you get this in your inbox asap, and we’ll see you on Youtube!

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