MARKET UPDATE FOR THE WEEK ENDING JANUARY 25TH, 2019
We are almost a month into 2019 and it feels like the Toronto real estate market is getting a fresh start. As we enter a more balanced market, the discussion is still about the lack of inventory. We are all watching for signals that buyer sentiment will heat up. In recent months home price growth has faltered, mortgage rates have risen to their highest point in nearly eight years, and favor has started to shift from seller to buyer.
The long-term prospects for housing are good because demographics are going to continue to support demand. The largest cohort of millennials will be turning 29 this year entering peak home-buying age and contributing to the increase in first-time home buyer demand. Older millennial move-up buyers will have more options in the mid to upper price point and will make up the majority of millennials who close in 2019. Toronto’s housing market might be in an uneven slump, but experts are saying don’t expect a major decrease in house prices, because the city is seeing accelerated growth in its adult population which will keep the market humming!
The freehold market is starting to build up some steam. We are starting to see an uptick in new listings and a surprising amount listed above $3 million. Buyers are circling and they are willing to move quickly when they see a property that ticks all the right boxes. In the resale condo market, we saw a small 12% increase in new listings from the prior week while sales were up a whopping 68%, and of those sales more than 50% sold at or above the asking price which is a solid indicator that the condo market is trading well.