Toronto listings are starting to see multiple offers starting up again. What has happened in the last week that has caused this frenzy?
The psyche in the market has already started to shift. Could it be this unusually warm weather we are having? Does it feel like spring for the buyers? Do the buyers seem more “optimistic” about the housing market these days? Are they just plain tired of waiting on the sidelines or are they seeking to get ahead of any possible shopping frenzy spurred by expected rate cuts from the Bank of Canada?
This week in the east end of Toronto (E01-E04) there were 19 freehold sales and of those sales, 12 sold over the asking in bidding wars with the average sale-to- list price at 121%. We are also seeing bidding wars in other parts of the city as well.
Take for example a three-bedroom, three bath home in Mississauga’s Erin Mills neighbourhood which sold Monday for $250,000 above asking after receiving a staggering 85 offers. It was listed at $749,000 and sold for $999,000. The listing agent did not anticipate the demand would be this overwhelming.
We don’t know if we can definitively say it’s a multiple [offer] market or a sellers’ market, but we definitely think we are starting to see people test the waters and figure out where their product lands and where the buyers are.
Buyer sentiment in Toronto began to show marked improvement in the last couple of months of 2023. According to data from the Toronto Regional Real Estate Board, home resales in Toronto clocked in at 1,266 in December, and that figure was up 10% compared to December 2022.
Then January brought yet another rate hold from the central bank, along with the sweeping consensus that rates have finally peaked. Though the BoC is yet to say anything concrete about rate cuts and their timing, buyers are more motivated than they’ve been in months.
Good inventory that’s coming to market that’s well priced and well-presented, in good pockets of the city, are the ones where you’re starting to see some multiple offers, an increase in showings, and high traffic volume at open houses. Riverdale, Leslieville Roncesvalles, Bloor West — those prime pockets where families are looking to lay roots are definitely seeing buyer demand.
Here are the top 5 trending stories of the week:
- Rent Arrears Surge To 20% In Toronto: CMHC | “There was little reprieve for Canadian renters in 2023, as tight supply-demand conditions pulled vacancy down and prices up. This is according to new data from Canada Mortgage and Housing Corporation (CMHC), which highlights that rental affordability was grim across the country, but grimmer still in Toronto. In its annual rental market report, published Wednesday morning, CMHC reveals that vacancy for two-bedroom purpose-built rental units dropped to a “new low” (or at least, the lowest the metric’s been since the government agency began tracking the data in 1988) of 1.5% by October 2023.”
- Toronto mayor’s executive committee endorses 10% speculation tax on foreign home buyers | “Toronto Mayor Olivia Chow’s executive committee voted Tuesday in favour of creating a new municipal tax on foreign home buyers who purchase property in Toronto. If approved by the full council next month, the “municipal non-resident speculation tax” (MNRST) would make foreign nationals pay an additional 10 per cent on the purchase price of residential properties starting in January 2025. The city staff recommendation sailed through the committee by a show of hands.”
- Inaugural International MLS Forum unites global industry leaders to address urgent need for single data standard | “RESAAS Services Inc., a technology solutions provider to the real estate industry, reports its head of industry development, Joe Schneider, organized, hosted and moderated the inaugural International MLS Forum. A release states the event’s focus was on “the importance of a single global real estate data standard as the basis for industry innovation.” More than 100 leaders from 32 countries attended the forum, representing all areas of the global industry, including real estate broker-owners, association executives and MLS CEOs.”
- People formed a huge line to bid on this Mississauga home with a whopping 85 offers | “A three-bedroom, three-bathroom home in Mississauga’s Erin Mills neighbourhood recently sold for $250,000 above asking after receiving a staggering 85 offers. The semi-detached, two-storey property, located at 3479 Longleaf Court just off Burnhamthorpe Road West and Winston Churchill Boulevard, was recently listed for $749,000 “
- Chinese developer Evergrande to undergo forced sale amidst $333 billion of debChinese developer Evergrande to undergo forced sale amidst $333 billion of debt | “A decision by Hong Kong’s High Court ordering the forced sale of embattled Mainland Chinese real estate developer Evergrande is making new ripples in China’s already struggling economy and real estate sector. According to CNN, on Monday, the court ordered a liquidation sale of the company’s assets following a series of events and snowballing conditions in recent years — initially marked by the company’s default on its debt in 2021, which largely triggered a property crisis in the country.”
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