The extremely cold February and March led to a shortage of listings and frustration for buyers and their agents. However, TREB has just announced that both TorontoMLS sales and the average selling price have increased significantly year-over-year.
The average selling price in March 2014 was $557,684 — an 8 per cent increase compared to the average price in March 2013. Even though this is a high increase, multiple offers have become the norm this spring.
It looks like borrowing costs will remain low and homeownership demand will stay strong, facing the limited supply of listings. As the weather warms, there will be a lot more to choose from, but the benchmarks that have been set over the past few months will encourage listings to come to the market at higher prices than what we saw before Christmas. This will probably be the case for the rest of 2014.
Sellers need to get on the market now, and buyers should relax — but they should also put in offers at what they can afford. If the value is there, go for those multiple offers. If you don't go for it, the next comparable property will reflect the higher price and you will miss out.
Keep making offers until you get the property you were meant to have. Don't shy away from competition!
Title photo by: Mith Huang