Keep Calm And The Market Moves Along
The 2014 spring market has kept up and exceeded expectations. The climate is strong as excellent inventory has come to market and Buyers are more than willing to snap up these offerings. Yes, it is still a Sellers market, but be wary of the media reports highlighting stories of crazed Buyer’s engaging in ridiculous multiple offers. There is usually a straightforward reason for these bidding wars, inexperienced listing agents who intentionally set a low list price and a lack of inventory.
In the winter, a west end property on Perth Avenue had 32 offers and sold for 133% of list price. In the early spring a house on Rhodes Avenue in the east end got it’s moment in the spotlight, 25 offers and $170k over the asking price. And just last week Glencairn Avenue experienced the multiple offer of ALL multiple offers, 72 offers and 195% of list price!!! (my client’s offer was 1 of those 72 offers). The original list price of $699k, for a detached, 5 bedroom home in prime North Toronto. The problem with this listing, as reported in the Toronto Star, the listing agent admitted that it has been 10-15 years since a comparable house in this pocket has sold for $699k.
As an aside, it is my strong belief that this listing agent wasted the time and energy of most Buyers and Realtors who took the time to show this house. If the Seller really wanted an auction, one should have been set up. It is irresponsible and wrong to use the MLS system as a means to generate personal publicity.
Properties such as Glencairn and the media’s focus on dramatic multiple offer scenarios gives the impression that the Toronto real estate market is not a realistic market to buy into. The market is strong, but many of my Buyers this spring have been the only offer on the table allowing traditional negotiations to occur. My Buyers who have been been in multiple offers and won, paid based on the comparables and market value. All have been satisfied with their purchases and the price paid.
We must also remember that if you sell in this market and you get top dollar for your house you are also likely going to be buying in this market, paying top dollar for your new house. At the end of the day any gains in the sale become relative, balancing the final outcome.
With the right advice and a little skill, navigating the active Toronto market can be rewarding for both Buyers and Sellers.