Buyer? Seller? What’s Up With Toronto’s January Housing Market?

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This has been one of the craziest January’s I have ever had.   If you have not heard, there’s definitely a shortage of housing inventory which has created a pumped-up, high-octane seller’s market.   However in saying this, those who are selling a condominium are definitely not feeling the same heat.

Let me describe how my days have been going for the first two weeks of 2014.  Every morning I look at the new listings and match up potential listings to my buyers and then fire it off to them.   Normally we would have a couple to look at,but each day seems to unfold the same way.   It ends up in a conversation such as “There is nothing new today, but I will keep looking if any new comes out later today you will get it ASAP”.    The other conversation I have is “This house has just come out on the market but it needs $50,000 in work and it’s overpriced by 10%”.

However, every time my buyers saw a house, which was perfect for them, we ended up in multiple offers being one of five offers, one of eight, one of twelve…you’d think it was a hot spring market if was not for the snowbanks.   Just to get an idea of our Toronto East housing market, last night a detached bungalow on Coxwell attracted 24 offers and sold $145,000 over list price.  It was a bit of a disappointment to the buyer who had a similar offer but was $5,000 less than the winning offer. It was an insane night!  But don’t think this is the norm, as I have also seen houses languish for weeks and then take a beating on price.  This loss was mostly be attributed to sellers having an over evaluated listing price.

My thoughts are still the same in dealing with the acute shortage of housing inventory.  If you are waiting to see what comes up on then you are already 24 to 36 hours behind. the pack.   It’s like being in the Olympic Downhill and giving your competition a 2 second head start…and in our present market you will never make the podium.   It takes a minimum of 24 for a listing to hit mls so by the time you see my buyers viewed it the day before, have completed our comparison analysis, had our financing status reviewed and by the time you’ve called the listing agent to set up an appointment we are in the process of submitting an offer.

For those looking at selling.    For those sellers I’m working with, I have a couple who are are pushing to list in late February and early March to capitalize on the shortage of housing inventory.

Whether you are buying or selling in this market you do not want to be a follower.