Prices spike as lack of quality new listing supply is becoming a major problem for Toronto

Listing supply pulls back for the 2nd week in a row, and buyer activity continues to heat up as we head into the spring market.

Sellers are enjoying a return to the Toronto normal…for now, anyway.

Will this last?

Obviously not, but I’m not here to give you the basic “this is not sustainable” argument that doesn’t help anyone.

Right now, as a seller, you’ll likely do well.

Despite high-interest rates and the economic uncertainty that lies ahead, Buyers are buying, and Sellers are taking their bigger-than-expected cheques to the bank.

The deals on the assignment market aren’t as juicy either.

A few months ago, you could pick up an assignment for less than the original purchase price.

But strong buyer sentiment has overflowed into the assignment market a little as well. Deals are still available, but the best we’ve seen are offerings at the original purchase price plus selling fees.

Buyers who are being led by less experienced agents or agents who haven’t taken the time to understand the market in real-time (usually agents who wait for the board to release monthly data) are having a hard time and being surprised by the increased activity.

Many who are finally ready to get into the market after hearing “now’s the time” for months are finding it a little too late to take advantage of the best deals and depressed prices.

I expected 2023 to be relatively slow overall.

I said it many times!

Even I was surprised by this increased Buyer activity, considering rates haven’t come down.

Why are buyers buying? Why are buyers so comfortable now?

Certainty.

Or at least the perception of certainty.

I’m fairly confident that most rate increases have already happened, but I’m afraid some think the rate hike cycle is over.

I don’t think that’s the case, but aside from a few minor rate bumps, I believe the storm is mostly behind us.

But this is a big week for the US.

The Fed is set to announce CPI inflation data tomorrow, along with the Fed minutes. The March CPI data will be announced on Thursday, then the consumer sentiment and retail sales data on Friday.

So if inflation comes in higher than expected, rates may go up.

I’ll keep an eye on what’s happening this week and report back asap!

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!

(please subscribe to the YouTube Channel here, where I go over all of these reports in more detail)

Urban Markets: Downtown & Surrounding Areas
House Average Price: $1,592,255
House Median Price: $1,431,250
377 Active Listings
62 Firm Sales This Week
Months of Inventory (MoI) ~ 1.69 (up from 1.38 last month)
Average Days on Market ~ 13.4

Condo Average Price: $816,934
Condo Median Price: $710,000
1346 Active Listings
117 Firm Sales This Week
MoI ~ 2.67 (up from 2.41 last month)
Average Days on Market (DOM) ~ 25.39

Urban North: Rosedale, Deer Park, Moore Park, Forest Hill, & Lawrence Park
House Average Price: $2,923,192
House Median Price: $2,671,724
113 Active Listings
9 Firm Sales This Week
MoI ~ 2.40 (up from 2.20 last month)
Average Days on Market ~ 16.1

Condo Average Price: $1,439,950
Condo Median Price: $1,102,500
204 Active Listings
14 Firm Sales This Week
MoI ~ 3.76 (up from 3.17 last month)
Average Days on Market ~ 35

Leaside, Davisville, Yonge & Eglinton
House Average Price: $2,506,770
House Median Price: $2,335,081
27 Active Listings
8 Firm Sales This Week
MoI ~ 1.14 (up from 1.05)
Average Days on Market  8.38

Condo Average Price: $665,379
Condo Median Price: $637,500
122 Active Listings
12 Firm Sales This Week
MoI ~ 2.56 (up from 2.43 last mth)
Average Days on Market ~ 15.42

Birch Cliff
House Average Price: $1,070,525
House Median Price: $966,050
13 Active Listings
4 Firm Sales This Week
Months of Inventory (MoI) ~ 1.05 (up from 1.02)
Average Days on Market ~ 8

Kingston Rd Corridor to Highland Creek
House Average Price: $1,295,300
House Median Price: $1,178,800
53 Active Listings
12 Firm Sales This Week
Months of Inventory (MoI) ~ 1.66 (up from 1.16)
Average Days on Market ~ 20.5

Condo Average Price: $662,300
Condo Median Price: $670,500
50 Active Listings
10 Firm Sales This Week
MoI ~ 2.76 (up from 2.29)
Average Days on Market ~ 18.2

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