Newsletter MAY 2008

A LITTLE BIT UP, A LITTLE BIT DOWN, A LITTLE BIT SIDEWAYS...

It’s getting trickier to understand Toronto’s real estate market, after a number of years of unadulterated growth. April marked the 4th consecutive month of decreased sales activity across Toronto – with sales volume off 7% from April previous. But appreciation remains strong, with housing prices up 5% from this time last year, and absorption in April was at the strongest we’ve seen in a year. In fact, houses are selling – on average – 4 days more quickly in the central region as this time last year.
So amidst the mixed messages is this: the market remains extremely strong, appreciation is still outstripping inflation, and good homes are selling well.

THE END OF THE BIDDING WAR?

Not so quick. In the last week alone I have sold two properties on offer dates, and each sold for 115% of the asking price. However, there’s growing evidence that the appetite for bidding wars is finally waning, and anecdotal evidence that more and more properties are being “priced to sell” rather than to attract multiple offers. I believe that the next few months will see fewer bidding wars except amongst truly spectacular and unique homes.

A FLIGHT TO QUALITY

It remains true that superb homes are returning fantastic sales to their owners – and a number of great homes have sold in the last 60 days. The continued absorption of pre-construction condominiums continues to suggest that buyers are looking for new or newer homes, with modern features and conveniences. While truly unique homes remain rare in downtown, there are some exciting properties at almost any pricepoint.

Thanks for your time, and all my best wishes in the months to come.

Yours,

 

Paul

Paul Johnston
Sales Representative
Right at Home Realty Inc.
416.897.5480
paul@pauljohnston.com