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1st Quarter Market Analysis

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During the 1st quarter we saw the market take off after towards the end of January. Homes and condos went into multiple offer scenarios quite frequently. A big reason we see multiple offers in a lot of winter months is due to the lack of inventory.

The market has stayed steady for the last few months despite what the media reports. Homes are still going a couple hundred thousand over asking price, condos are going anywhere from $50,000-$100,000 over asking price consistently.

The difference from first quarter this year compared to last year is that only the sought after buildings, condos and homes located in desirable neighborhoods are going into these multiple offer scenarios.

If you have a house or condo that requires a lot of work, located in unpleasant neighborhood then you aren’t going to have multiple offers on your property. It could take a month or so to sell, vs. last quarter when literally anything listed was going well over asking price no matter what it looked like or where it was.

The media seems to think that if every single property isn’t a complete multi bidding bonanza then the market is crashing. In my opinion only the great properties should go into multiple offer scenarios. So I view this as a hot market just not an insane one and I think that is healthier for everyone.

Entry level condos have been the most competitive because they have the largest catch basin. We are seeing $1000 sq ft consistently across downtown. This entry level price point for condos has seen the largest market increase of any product with increases of nearly $200 sq ft over the past year. I still believe entry level is a good buy because it still is the most affordable.
Freehold Homes will continue to be a good buy, even if you have to pay the large price tag. There isn’t any more land to build on, therefore, the supply is the supply. We are also seeing blocks of homes ripped down to build up so you really have a depleting supply. With immigration having steady numbers of up to 300,000 people coming here every year freehold home prices continue to rise.
Rent has also increased about 10% over the past year. Due to the lack of inventory and the government imposing so many biased laws towards landlords. There seems to be less investors buying condos to rent out. Most condos are $4 sq ft in the downtown core, while some luxury condos are as high as $6 sq ft.
The 905 area has been hit much harder with the rules that have been implemented over the past year. There are multiple offer scenarios here and there. They aren’t going over asking at the same ratio’s that Toronto is seeing.
I still think buying in Toronto is the safest bet even if you are getting less bang for your buck. If there’s a down turn in the market you’re better off in the city as opposed to the suburbs. Toronto is the center of the universe when it comes to Canada. There will always be a lot more need and demand to live here.

Hope this helps all of you! Feel free to reach out if you have any additional Questions!

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