By Carolyn Ireland, published in the Globe and Mail, June 9th, 2016
Aspiring buyers in Toronto’s real estate market in May were contending with prices about 15 per cent higher than they were last year at this time.
No wonder bidding war fatigue is beginning to permeate the market.
Some agents and buyers are wilting, Richard Silver of Sotheby’s International Realty Canada says.
Multiple offers seem to be lessening – not due to lack of interest but due to a lack of desire to compete and push the price too high,
According to the Toronto Real Estate Board, the average price jumped to $751,908 in the Greater Toronto Area in May to mark a 15.7-per-cent increase from the same period last year. Throughout the spring market, prices were inflated as the increasing amounts above asking seemed to swell each week.
In one jaw-dropping example, an east-end semi-detached, recently listed for $799,000, sold for more than $1.1-million after the buyer offered a premium of $313,212.
The average price of a detached house in the 416 area code jumped to $1.28-million last month.
Sales swelled 10.6 per cent to mark a record for the month of May. Listings, meanwhile, sank 6.4 per cent in May compared with May of 2015.
While some potential buyers are worn down, others are changing tactics.
Shawn Lackie of Coldwell Banker R.M.R. Real Estate says the game is changing on a regular basis. He recommends that buyers who expect they’ll face competition on offer night might try being first at the table instead of the last.
Many agents aim to be the last in because they want to suss out the number of rivals first. Often, they will tack more onto the offer with each additional party in the lineup.