08 Jun 2021

Week 66: Entry Level Luxury Market Severely Undersupplied Resulting in BIG Offers for Sellers. 

Urban Markets: Downtown & Surrounding Areas
Holy sales, Batman! Both house and condo sales ramped up this week indicating strong buyer demand once again. We didn’t however, see a third consecutive week of declining inventory. Meaning, we’re not immediately in danger of a serious supply problem like we had earlier in Q1 of this year.

Keep reading to find out which property type is actually severely undersupplied atm.

It does seem like there is some heat taken out of the market though. These past few weeks we’ve seen a number of properties in the urban communities of Toronto not get any offers on offer night. Only to re-list the next day and sell for a good number anyway.

To by “heat being removed” I’m simply referring to fewer showings and less successful offer nights.

But as I’ve said over and over, although some properties aren’t selling on offer night, they’re still getting their bigger asking prices further down the road aka the previously set high prices are being supported over and over and over again.

The only sector that’s still severely undersupplied and is seeing week-over-week gains is the $1.7-$2.5mm house market. So undersupplied with every next sale selling for more than the previous. An unbelievable number of buyers in that range right now.

Condos – We’re used to getting dozens of viewings then eventually a few offers. However, what we’re seeing almost across the board are fewer showings but offers at high prices materializing anyway.

But there seem to be some Sellers and Agents who don’t understand that it’s not Q1 anymore. We had an agent in the area list a condo and expect $20K more than the previous sale and they didn’t even have a parking spot! He said “do you know the market? Comps go out the window in markets like this” I had to hold back my laughter as he said this..just said to him “good luck, bud” feel so bad for that Seller!

It’s not Q1 anymore and comps matter! Properties aren’t popping in value week over week anymore. A sale today is a good indicator of what you’ll get for a similar property tomorrow…except in the $1.7 – $2.5mm range as indicated above.

House Average Price: $1,771,545
House Median Price: $1,475,000
562 Active Listings
109 Firm Sales This Week
Months of Inventory (MoI) ~ 1.51
Average Days on Market ~ 7.08 DoM

Condo Average Price: $857,313
Condo Median Price: $728,000
1544 Active Listings
203 Firm Sales This Week
MoI ~ 1.84
Average Days on Market (DOM) ~ 14.71

Urban North: Rosedale, Deer Park, Moore Park, Forest Hill, & Lawrence Park
These communities are all the rage these days! So undersupplied, so much demand.

I don’t think there’s ever been a time where there have been this many buyers in line for $2.5-8mm homes. The super hot stuff is flying off the shelf in record time while some of the less attractive product that needs a bit of love it sitting a little longer….but not that long.

If you’re a buyer in these communities then you’d better be prepared to compete and compete hard.

House Average Price: $3,120,524
House Median Price: $2,553,000
148 Active Listings
25 Firm Sales This Week
Months of Inventory (MoI) ~ 1.77

Condo Average Price: $1,402,795
Condo Median Price: $1,035,000
243 Active Listings
21 Firm Sales This Week
MoI ~ 2.93

Leaside & Davisville (including Yonge and Eg)
So much for that new listing infusion last week! All pulled back this week with only 55 available houses in this massive area.

Much like the Urban North communities, this area is still severely undersupplied and $2mm doesn’t go as far as it used to.

If your budget is $2mm or less then you may have to settle for a main street property or a place that needs a little more work than you had planned. Especially if you want to be in the Bessborough School district.

Condos continue to outperform all condos in the 416 here. My definition of “outperform” in this context is more in line with stability. Since Covid began, these communities have been the calmest. No major fire sales, no massive fluctuations in pricing.

House Average Price: $2,242,005
House Median Price: $1,970,000
55 Active Listings
19 Firm Sales This Week
Months of Inventory (MoI) ~ 1.50

Condo Average Price: $851,900
Condo Median Price: $767,300
125 Active Listings
10 Firm Sales This Week
MoI ~ 1.47

Birch Cliff
Welcome to the new Birchcliff! I told you over and over and over again so hopefully, you listened and made an investment here.

My future investment dollars will be reserved for East End Condos and houses along Kingston Rd from Warden going East and you should do the same. Your future self and your super comfortable retirement will thank me 🙂

Why?

So much development along Kingston road is going to bring so many new people to the area
Density caps will limit the size of buildings and naturally restrict the supply
Big house lots you either can’t find anywhere more urban or are way too expensive in the beach
Drake’s new concert venue at Kingston Rd and Queen…ok kidding but that’s a pretty awesome announcement…no? It’s almost ready!

House Average Price: $1,347,143
House Median Price: $1,250,000
25 Active Listings
7 Firm Sales This Week
Months of Inventory (MoI) ~ 0.87

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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