Jeanette Grant

MARKET UPDATE FOR THE WEEK ENDING JANUARY 29TH, 2021

02 February 2021
Jeanette Grant

MARKET UPDATE FOR THE WEEK ENDING JANUARY 29TH, 2021

Have you heard? The Toronto spring real estate market is underway and its picking up steam at an uncomfortable pace. Several significant home sales with multiple offers and plenty of “bully offers” are flaring up in some hot pockets of the city and the surrounding 905 regions. Buyers have secured very attractive interest rates and the demand for space rather than speculation seem to be driving the market. It’s a concern among central bankers that this could be become a bubble with such low interest rates. On Wednesday, Canadian policy makers kept interest rates at 0.25%, and committed to keep borrowing costs low until the damage from the pandemic is fully repaired, something they don’t see happening until 2023.

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 that 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.

Bosley Real Estate Ltd. is a full-service boutique brokerage operating in Toronto, Muskoka, Niagara-on-the-Lake, Port Hope and Cambridge, Ontario since 1928. We have three centrally located offices in Toronto and over 250 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized internationally thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately reflect the true temperature of the real estate market.

 

HERE ARE THE TOP FIVE TRENDING STORIES OF THE WEEK:


BMO Uncover Simple Reason Canadian House Prices Now 46% Higher Than U.S.

The Canadian economy's addiction to real estate has hit a new high.

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Toronto's housing market so hot even the bully bidders are at war.

In many years, the Toronto-area real estate landscape feels glacial in January, but this year, sellers are quick to list and bidding contests are flaring up in some spots.

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Barrie is Now One of Ontario's Most 'Sought-After' Real Estate Markets

Shifting consumer behaviours in the face of COVID-19,

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Toronto Homeowners Spend Nearly 30% of Their Income on Mortgage Payments

The tale begins with themes you're probably familiar with by now:

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New single-family home sales in Toronto soared 81% in 2020

Thinking of leaving Toronto? You're not alone.

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