24 Aug Market Update: Ready for the Fall surge?
As suspected, this was a more active week for house listings with sellers trying to get ahead of the fall surge. Having said that, almost nothing interesting came on the market in the condo sector and most of the quality condos listings have been purchased. This has made for a very tight condo market.
In the loft market, I saw a few price reductions on significantly overpriced units, mostly related to unrealistic expectations. On the freehold side, we are going to have a lot more inventory heading into the fall market than we have had in a very long time. I suspect we will see some price reductions on the listings that carry over into September. New listings should also be more reasonably priced.
I believe August’s freehold sale prices will be down from July’s sale prices, although year-over-year still up. Condos should remain hot and the only affordable option for many who want to live in the core. Looking further out, condo prices may level-off as buyers switch to freehold opportunities and condo affordability is eroded. Although, if the federal government institutes the OFSI recommendation of a stress test (qualification at a higher rate) for uninsured mortgages (over 20% down), the condo segment may be further pressured, sending prices higher.
-Nick, Aug 25/2017