There is exuberance in Toronto’s real estate when Manning Avenue suddenly came up with the most sought after houses with asking prices below $1 million. These gave buyers the impetus to go on a buying spree to own a house of their own at less than $1 million. However, what is presently happening is said to be a seller’s market, where sales prices are higher than the asking price.
Prices are going haywire where brokers see properties needing renovation get 30 plus bidders; and a semi-detached unit with a listed price of $649,000 was later sold at 40 percent higher than its asking price— to about $908,000 plus. The buying frenzy has not stopped and every agent thinks that there is still lack of listings to go around.
Properties in Manning are being lapped up like hotcakes with a renovated Victorian style house of $849,000, eventually got a bid price of more than $1 million. Another property in the same area with an asking price of $750,000, was sold to the highest bidder at $1.035 million.
This upward trend in real estate prices are also seen in other areas. Places like Markham, saw a three story detached apartment , sold for nine percent more than its asking price $1.35 million (vis-à-vis $1.471 million). The frenzy in real estate homes are seen in Little Italy that covers Beaconsfield, Bickford Part, Beaconsfield—among other areas.
Buyer interest is filling on Condos and townhouses with the recent real estate development in Ossington called Block , that lures in new buyers because of its demographic appeal. The selling prices of condos are considered healthy in the resale market. However, a listing price of more than $1 million in Sotheby’s that was at the high end side of the market , only got one offer above its asking price.
The winning bidders were a couple who made sure that there will be no other rival bid. Nonetheless, homeowners willing to sell their homes are not that many. Most seniors prefer to stay in their homes and a listing would only be made available if they opt to move to other areas. The only problem is that they stayed well into their 90’s before they decide.
Some agents like Mark Savel of Sage Real Estate Ltd., had an altogether different experience when he took his clients on the high end offerings on Manning. The budget specified was from $650,000 to $900,000. They saw a house that they liked with an asking price of $849,000. However, it was apparent that there would be a bidding war as the date approached.
When they saw the frenzy of eager buyers, the clients dropped it off and decided to pass. The reason is that this couple had already participated in four bids and they were battle scarred. They came up with a new strategy by looking for the condo that they want that are not yet listed yet.
When they found what they wanted, they jump the gun by submitting an offer ahead of the others. The seller accepted the offer and the clients were happy with the turnout of events. They felt that they had a good buy since there is potential for the property to appreciate more in value over the long term.
Most realtors foresee that the listing for centrally located single family detached dwelling unit may increase in spring. Two sellers have been known to include their houses for listing in the coming season. Many sellers are moving up towards the high end homes with a price range of over $1 million. With this niche, there is not much competitors, since the required down payment is at least $200,000.
It remains to be seen if the bid wars are going to happen in the $1 million and upward range too. Some buyers who are bided out of the Central Toronto area may opt to look at the suburbs – towards the north and west communities in Vaugham where houses are cheaper. With the completion of the subway transit, much excitement is generated for people to head towards outlying communities.
Many parents are now looking into school rankings through the Fraser Institute to find schools that have strong French language studies. It has been noted that schools in Vaugham have increased their enrolment due to their French language offerings.
The outlying communities of Maple, Paterson, and Vellore have seen a decrease in the number of listings since 2012. Real estate prices, however, have firmed up due to increase in competition among buyers. On the other hand, listing for Kleinburn and Islington Wood has continued to increase since 2012.
Brokers have said that it is still early to foresee on what will be the emerging trend for the housing sector. They believe, though that government policies on housing mortgage will play a vital role on the coming trends.