Market Update for January 29th
Low financing costs will probably mean demand for single-family homes continues to outstrip supply in 2021, according to the Monetary Policy Report that accompanied the decision. But the governor says he’s not worried about the country’s real estate market getting out of control, with contrasting conditions to 2017 when runaway prices in cities such as Toronto drew warnings about speculative bubbles and forced officials to take steps to cool things down. “So far we are not seeing the kind of excessiveness in the housing market that would really get us worried, “This doesn’t look like 2017.”
Freehold listings continue to climb. Last week we saw a 31% increase with the majority of listings in the central core in the $1.5M to over $3M price range. Sales were up week-over-week with 62% more properties sold and of those 64% sold at or over the asking price.
The condo market is also heating up again. We believe that the condo sector is filling in the gaps left by an ever-appreciating freehold market. It took a little hiatus at the end of 2020 but now there seems to be new momentum with buyers who may have been watching prices decline and now feel the condo market has bottomed out. Buyers are looking ahead and with the vaccine on the horizon, urban dwellers feel the city will recover.