MARKET UPDATE FOR THE WEEK ENDING OCTOBER 5TH, 2018
Countdown to Cannabis in Canada October 17th, 2018 Canada becomes the second largest country with a legal national marijuana marketplace. Uruguay launched legal sales last year, after several years of planning.
Many are speculating how the decision will affect society and the economy. We as realtors will see inquiries from our clients as to what the impact of legalization on real estate will be and how will it affect residential property markets. If we look at what is happening in Colorado, the results showed that single family homes situated within 0.1 mile of a recreational marijuana store experienced an increase of 8 per cent relative to homes farther away. Whether Canadians homeowners also see a high, remains to be seen!
In the freehold market new listings have eased off nearly 28% from last week. Almost the entire decline in new listings occurred in the central core. But the great news is sales were up 16%. With a shortage of listings and a big demand, a good indicator of market strength is the number of sales at or above the list price, which sits at a healthy 62% for this reporting period.
In the condo market we also saw a modest decline in new listings, down 9% from the previous week. Despite the slight reduction in the number of sales, over 53% of units traded at or above the list price, which shows that buyers are out there, but inventory is low. Condominiums will face an increasingly complex array of issues with the new Cannabis Act. The impact will be far-reaching and will pose challenges for condos, as Toronto dwellers are eager to light up inside their homes, but they may see that dream go up in smoke!
Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto, Niagara-on-the-Lake, Port Hope and Cambridge Ontario since 1928. We have four centrally located offices and over 250 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized internationally thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately reflect the true temperature of the real estate market.