Urban Markets: Downtown & Surrounding Areas
The Federal Budget Proposal didn’t do much to address Toronto’s real estate situation other than proposing a 1% vacancy tax which would penalize speculators who have no intention of occupying or renting out their investments. Since many units in Toronto aren’t sitting vacant, I don’t see this being much of a deterrent or concern for our market.

Will the new stress test be introduced at some point? Who knows but even if it does, there won’t be much steam taken out of our Urban Markets.

Although listings are up pretty much across the board in all urban communities, prices haven’t even thought about coming down. What we’re experiencing right now is the typical (and extremely predictable) lull that follows an intense period of massive, precedent-setting, price gains.

A lot of people confuse a “lull” for a correction or a bursting of the non-existent bubble that real estate bears love to drone on about. That couldn’t be further from the truth.

Some properties that would fly off the shelf are not getting the offers some Sellers anticipate on offer night. That said, there are others that are.  What was happening during most of Q1 2021 was not normal. Any house, no matter the condition, was selling for a massive number with an insane number of offers. Each one setting a new high.

Now that a new high has been established and listings are better supplied, houses and condos that are a little rougher around the edges aren’t going as crazy. So Sellers have had to adjust their go-to-market strategy.

Rather than list at a low price to create a multiple offer situation, you may have to list at a price you’re willing to accept now and wait for that buyer to come along.

Guess what? The previously achieved higher prices are being supported over and over again with new sales. Whether it’s with 15 offers or with just one. 

Prices are not down and they’re not coming down just because they’re high. There has to be some sort of economic trigger…like a pandemic…which we hope will be behind us soon. With the announcement of the wage subsidy being extended till September at least, I don’t see this market doing anything but flying until at least the end of summer.

So if you’re a buyer…go and buy, but understand that if you’re looking for a “bargain” this isn’t the market for you…actually…Toronto isn’t for you. Both in Condos and Houses.

House Average Price: $1,703,023
House Median Price: $1,500,000
452 Active Listings
133 Firm Sales This Week
Months of Inventory (MoI) ~ 1.06
Average Days on Market ~ 7.45 DoM

Condo Average Price: $845,841
Condo Median Price: $721,000
1291 Active Listings
246 Firm Sales This Week
MoI ~ 1.34
Average Days on Market (DOM) ~ 12.17

Urban North: Rosedale, Deer Park, Moore Park, Forest Hill, & Lawrence Park
Both Condo and House supply jumped a little but the increase in inventory was easily absorbed by new sales. Sales in all price ranges from $2mm to well over $5mm.

Sellers here continue to enjoy massive offers from a lineup of buyers finding the money to get into their dream communities in homes that they’ll never have to move out of. Buyers are coming from all over the place, especially those who’ve realized massive equity gains in their aggressively appreciating urban homes and condos.

House Average Price: $3,044,146
House Median Price: $2,762,000
143 Active Listings
24 Firm Sales This Week
Months of Inventory (MoI) ~ 1.61

Condo Average Price: $1,399,871
Condo Median Price: $915,000
199 Active Listings
20 Firm Sales This Week
MoI ~ 2.75

Leaside & Davisville (including Yonge and Eg)
I haven’t seen this many house sales in the Leaside area since the beginning of Covid. 17 firm sale with the price of a 40’ new builds now pushing the $4mm mark. Eat your heart out, Rosedale! Leaside is coming for you!

Same with condos….more sales than average and loads of smaller studios moved this week. Hence the drop in average/median price. Although there were many lower-end sales. The top of the condo market also performed well here with strong sales up to $1.5mm proving once again that Yonge and Eg and the surrounding area, despite the sheer density and potential for huge oversupply, has performed the best during covid.

House Average Price: $2,088,450
House Median Price: $1,968,000
53 Active Listings
17 Firm Sales This Week
Months of Inventory (MoI) ~ 1.23

Condo Average Price: $703,216
Condo Median Price: $670,000
98 Active Listings
24 Firm Sales This Week
MoI ~ 1.31

Birch Cliff
Well, birch cliff has finally had a big WTF sale that should average up the whole community as new buyers will undoubtedly support this new high. A small renovated bungalow on Fernbrook just traded for over $1.7mm where previous comparables put the home in the mid $1.4’s. That’ll be reflected in next week’s report as I only track the previous Sunday to Saturday.

Birchcliff has been doing well and has been severely undersupplied (2nd to Leaside area) for over a year now. We’re finally seeing those HUGE numbers that I’ve been talking about for a long time. Congratulations to any buyer that got in here over the past year. You’re about to see some serious gains.

House Average Price: $1,368,563
House Median Price: $1,186,000
26 Active Listings
8 Firm Sales This Week
Months of Inventory (MoI) ~ 0.78

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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