20 Apr The spring market is continuing to heat up
The spring market is continuing to heat up. I am seeing more bids on offer night and consequently larger sale prices throughout the most desirable neighbourhoods. If you have been following my newsletter, you will know this started over two months ago. The momentum is continuing with many desirable properties in the both ends of the city fetching big sale prices. The West end is particularly competitive as there is less quality inventory, in my opinion.
On a positive note for buyers, April has brought an influx of inventory on the freehold side which should help to statistically balance the market moving forward. Considering the nasty weather conditions, this is a good sign as some sellers still may have held off. In my world this is exciting, as I am looking forward to bringing my clients the best opportunities.
On the condo side, the market continues to moderate and I expect month-over-month appreciation to continue to slow. Buyers are taking advantage of lower freehold prices and the surge to the $1000/square foot mark has made carrying costs less attractive for condo investors. It was reported this week that the rent many investors are receiving isn’t covering their carrying costs. Instead they are relying on appreciation and as that moderates we could see more units come on the market. If you are in the market for a condo, it is important now more than ever to stay away from investor owned buildings, specifically condos in high density, high rental areas.