Sweet spot for buyers may be in the early summer

The real estate market in downtown Toronto has continued to improve in May. We are finally seeing some good weather with more buyers and sellers coming to the table. I am seeing many more new listings in comparison to April, but not enough to keep up with demand. When May’s sales figures are released in a couple weeks, I expect month over month sales and listings to be up, along with average sale prices of freehold homes. If so, that will be 5 consecutive months of appreciation.

Earlier in the year I mentioned the sweet spot for buyers may be in the early summer, when inventory will be at its highest. The new inventory so far in May is playing into that theory, but the poor weather in April has pushed the selling season forward a little. As such, I expect this to be a very busy summer and if you can stick around long enough, you may find yourself with more choice. 

Last month the average price of a condo in the 416 hit an all-time high of just over $600,000. This month, the condo segment has continued to be the most active and best performing. I suspect a levelling off is coming as the affordability of condos is deteriorating, but so far there is no indication of that happening.         
 

Nick Horton, May 25, 2018

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