13 Jul A good week for new quality listings
This was a good week for new quality listings considering it is mid-July and the summer holidays are in full swing. What do I mean by quality listings? I am referring to properties with solid fundamentals in desirable neighbourhoods. A quality property does not necessarily have to be renovated and have 2 car parking. A quality property can be a fixer-upper in an upcoming area. As I look over the new listings this week, I see many properties that fit this description. Many of which I am reviewing with clients.
Coincidentally, there are also very few sales of freehold homes this week, which should help build future inventory. A slow build-up in inventory may provide opportunities this summer and into the fall. This opinion is contrary to the message from the Toronto Real Estate board. TREB believes competition will pick up and the market will tighten in the second half of the year. This could very well be the case, but I am not so sure. Listings this spring market never really got going because of the uncertainty surrounding the direction of the market and frigid weather. This made for very little inventory and a very competitive market in the 416. We saw 6 straight months of appreciation and aggressive bidding wars.
With rising interest rates and the recent positive media about the Toronto real estate market, investors may take this opportunity to cash out and buyers may be less aggressive. I would not be surprised to see a bit of a lull in the market as buyers take their foot off the gas. Having said that, in the 416 the most likely scenario is a more balanced market. This could create opportunities on quality properties. Why am I all of a sudden reminded of this scene from the movie The Big Short?
-Nick, July 13/2018