Week 167: Condo Comeback: Surging Sales, Rising Inventory, and the Pending Market Lull

House sales are up 37.8% since April 4th, but we still need more to absorb the new inventory. As of today, listings sit 25% higher than in early April. We’ll likely see a summer lull start sooner than expected for houses while condos still have room to add supply.

But I wouldn’t get too comfortable in condoland either.

Condo supply is also up 11% since April 4th, but the real story is that sales have rocketed up an astonishing 73.8% since the end of February and counting.

House sales are hovering around where they’d typically be in a lower interest rate environment, but Condo sales are still well below what I’d consider average sales volume. So I’m less concerned about a pending lull in condoland. We should see sales increase weekly for the next few weeks there.

Of course, I’ll keep an eye on supply across the board, as that’s always been a solid indicator of what buyers and sellers will experience.

Perhaps not yet, but soon we’ll start to see houses not sell on offer night and then sell at the higher listed price later. Buyers are already showing signs of fatigue, and after the madness of the last year (who’d have thought post covid life would be just as stressful), people will want to take some time off.

So at the end of the day, this lull is not something anybody needs to be concerned about, as I still firmly believe that the bottom of the market is behind us.

But as inventory improves, and I say improves because if you’re a buyer out there, you’ve probably been frustrated with what’s available, so there will be more options for you going forward. We’re seeing new listings pop up daily, depending on where you are looking.

The urban markets are aggressively adding supply for houses and condos every day, but as I said above, sales are also increasing daily. Still, new listings are outpacing sales at the moment, so if that continues, then obviously, there’s going to be a point where the supply finally meets the demand, coupled with buyers getting frustrated with not finding what they want or losing on offer nights in a competitive situation is going to cause a bit of a slow down.

And this is nothing new; as I’ve said before, this happens every year and has been a defined lull in the warmer months since Covid began.

And I don’t believe it’s a signal of anything, but as I said, June 7 is an important date to see what they do with interest rates, but based on what’s happening in the US, I believe we will hold firm again.

I haven’t talked about inflation in a little while, and all the news about oil production seems to have fallen off a cliff, and oil prices don’t seem to be moving that much at the moment, so hopefully will have some more good inflation news.

However, what’s happening in Florida is quite concerning for food supply; fresh fruit, vegetables, etc., are likely to get very expensive in the coming months’ Supply will inevitably be a concern as new laws put in place by their governor have removed most of the workforce. Hence, it’s probably too early to know what will happen there, but at the moment, it’s not looking good for fresh food prices in the coming months, which could impact inflation and result in rates coming up again.

But I will keep an eye on that and see what happens.

For now, there’s a lot of positivity in the air. Still, people are spending their money at these higher interest rates.

Sales are increasing weekly, not just limited to a specific price point. We’ve got deals raging in the low 400,000s up to nearly $16 million, and they’re happening quickly.

However, some less-than-desirable and not-so-turnkey homes are sitting on the market longer than some sellers expected, so there could be some opportunity for folks with a bit of vision to snap up a property that some buyers overlook.

But again, some neighbourhoods like Leslieville, Roncy, High Park, Birch Cliff, Kingston Rd., Corridor Are all out- performing the urban markets at the moment, well in terms of supply anyway; the only areas adding a ton of supply are the urban communities everywhere else has sales increasing, but supply remaining relatively stable so further proving that people are seeing a lot of value up and down Kingston Road right now and I and I’m making big money purchases.

Curious to hear your feedback and have a wonderful day!

And if you’d like to book a call to discuss your specific real estate needs, you can do that here, and I really look forward to helping 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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Urban Markets: Downtown & Surrounding Areas
House Average Price: $1,711,698
House Median Price: $1,553,000
495 Active Listings
84 Firm Sales This Week
Months of Inventory (MoI) ~ 2.04 (up from 1.69 last month)
Average Days on Market ~ 11.82

Condo Average Price: $904,689
Condo Median Price: $800,000
1524 Active Listings
146 Firm Sales This Week
MoI ~ 2.81 (up from 2.67 last month)
Average Days on Market (DOM) ~ 21.56

Urban North: Rosedale, Deer Park, Moore Park, Forest Hill, & Lawrence Park
House Average Price: $3,555,316
House Median Price: $2,640,000
141 Active Listings
24 Firm Sales This Week
MoI ~ 3.11 (up from 2.40 last month)
Average Days on Market ~ 24

Condo Average Price: $1,387,820
Condo Median Price: $1,178,850
215 Active Listings
23 Firm Sales This Week
MoI ~ 4.05 (up from 3.76 last month)
Average Days on Market ~ 25

Leaside, Davisville, Yonge & Eglinton
House Average Price: $2,160,282
House Median Price: $1,917,500
44 Active Listings
12 Firm Sales This Week
MoI ~ 1.43 (up from 1.14)
Average Days on Market  6

Condo Average Price: $876,425
Condo Median Price: $705,500
135 Active Listings
12 Firm Sales This Week
MoI ~ 2.75 (up from 2.43 last mth)
Average Days on Market ~ 34

Birch Cliff
House Average Price: $1,310,800
House Median Price: $1,225,000
33 Active Listings
5 Firm Sales This Week
Months of Inventory (MoI) ~ 1.76 (up from 1.05)
Average Days on Market ~ 9

Kingston Rd Corridor to Highland Creek
House Average Price: $1,230,375
House Median Price: $1,203,001
67 Active Listings
8 Firm Sales This Week
Months of Inventory (MoI) ~ 1.71 (up from 1.66)
Average Days on Market ~ 3.88

Condo Average Price: $631,500
Condo Median Price: $675,500
41 Active Listings
4 Firm Sales This Week
MoI ~ 3.30 (up from 2.76)
Average Days on Market ~ 11

 

 

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