A Very Interesting Development in TORE
When I have been on MLS recently and talking to colleagues, I am seeing more and more properties set up for a bidding war in Toronto. I think this is directly related to the extremely low number of listings that are currently available. Many people have waited for several months to see what has happened and prices have come down, but they can’t delay the buying decision forever – a house is basic shelter at the end of the day – some people must sell, and some people have to buy!
Here is what I’m seeing – the good properties that have “wow factor”, especially those in central Toronto are being setup by the listing agent for an offer night in the broker comments (i.e. a bidding war). People are getting tired of waiting and when that dream house finally comes up, they are jumping at it. The houses that need to be completely renovated, have awkward room layouts & sizes, and obvious negatives are sitting – no one is chasing those.
The unknown here is how this will affect prices – I don’t expect prices to shoot up tomorrow, but this may be the start of the real estate market unfreezing. The market will probably continue to go sideways for a while yet, as good quality properties sell with higher prices and the other properties sit with multiple price adjustments, creating a “tale of two houses” situation. Only time will tell.
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