Greetings everyone! We are excited to present our weekly market update, where we delve into key areas of interest and provide valuable insights. While we will focus on specific regions, we encourage you to reach out if you’d like information on other areas. Let’s dive into our discussion on downtown and surrounding areas, the Don Mills area, Leaside, Davisville and Mount Pleasant, Yonge and Eglinton area, for both the housing and condo market.
Firstly, let’s reflect on the previous week’s market activity and the impact of the recent Bank of Canada decision. Several factors are shaping the market, including the usual summer lull and the consequences of recent interest rate hikes. Investors in the condo market might face challenges if their rents do not align with increased mortgage costs. Similarly, homeowners are grappling with rising mortgage rates over the past year and a half, with some seeing approximately 60% to 70% increases in their mortgage payments.
However, it’s important to maintain a positive outlook as these circumstances are not permanent. We anticipate a potential decline in inflation, and we hope to receive positive news regarding interest rates by the end of the summer, reminiscent of what occurred in January when the Bank of Canada announced rate stability. Such news could revitalize the fall market, especially since many prospective buyers may remain on the sidelines during the summer.
In the downtown surrounding areas, housing prices experienced a slight drop from just over 1.6 million to slightly above 1.5 million. Active listings increased from under 400 to 534, indicating a rise in available properties. While the number of firm sales remained consistent, the average days on the market decreased from 17 to 11, highlighting the importance of accurate pricing for successful transactions.
The condo market in the downtown and surrounding areas remained relatively stable, with prices hovering around $830,000. Active listings increased from 1,500 to 2,200, indicating an expanding inventory. Additionally, 109 condos were sold compared to 88 the previous week. However, condos may experience slightly longer sales cycles due to factors like financing and status conditions clauses. Consequently, the days on the market decreased from 21 to 19, signalling the potential for faster sales if properly priced.
The Don Mills area witnessed minimal activity during the previous week, with only one firm sale. Consequently, it is challenging to assess the pricing trend based on this limited data. However, the average price decreased from 1.8 million to 1.35 million. Active listings increased from 39 to 49, and the average days on the market decreased from 18 to 6. The following weeks may shed more light on the market conditions in this area.
In Leaside, Davis Mount Pleasant, and Young and Eg area, prices declined from 3.5 million to 2.1 million. It’s worth noting that this area has pockets with high-end homes, which can cause fluctuations in average prices that might not reflect the overall market conditions accurately. Active listings increased from 99 to 120, and the average days on the market decreased from 15 to 11. These indicators suggest that the market may experience an increase in days on the market as active listings rise.
Despite various factors influencing the real estate market, opportunities still exist for buyers, especially those who locked in rates prior to recent increases. Over the summer, as inventory continues to grow and buyers remain cautious, there may be opportunities to secure favorable deals. However, the pre-construction market shows signs of slowing down, which could lead to inventory shortages in the future.
While we expect a relatively flat summer market, we don’t anticipate prices dropping significantly due to factors such as immigration and low inventory levels. Positive news from the Bank of Canada could boost sales during the fall, although it’s essential to avoid unsustainable price increases seen earlier this year.
We hope this market update provides valuable insights. If you have any questions or concerns, please feel free to reach out to us. Thank you for your continued support, and we look forward to hearing from you. Don’t forget to subscribe, and we welcome your feedback.
WB = Week Before
Downtown & Surrounding areas
Housing Average Price-$ 1,520,712 WB – 1,676,187
Active Listings – 534 WB-394
Sold firm –45 WB- 46
Average Days on Market-11 WB-17
Condo Ave Price-$ 833,861 WB- $832,119
Active listings-2,201 WB- 1529
Sold firm-88 WB -109
Average days on market-19 WB-21
Don Mills Area-
Housing Average Price- $1,350,000 WB – 1,838,600
Active Listings – 49 WB 39
Sold firm – 1 WB – 5
Average Days on Market- 6 WB- 18
Condo Ave Price- $ 692,500 WB – $584,286
Active listings- 73 WB – 52
Sold firm- 4 WB – 7
Average days on market-15 WB – 10
Leaside, Davisville, Mount Pleasant, Young & Eg
Housing Average Price- $2,118,250 WB – $3,551,099
Active Listings – 120 WB-99
Sold firm – 10 WB- 9
Average Days on Market- 11 WB – 15
Condo Ave Price- $ 846,083 WB- $697,333
Active listings-242 WB-180
Sold firm-12 WB-12
Average days on market- 18 WB – 28