Remember the tale of 2 couples trying to buy a home in Toronto? Where they unexpectedly faced fierce competition whereby the properties were sold before they could see it? And that multiple offers were at play if you wanted to buy?
Well, what they were experiencing was the beginning of a Toronto housing market that is becoming too hot to handle during this cold month of January.
For the past couple weeks, my fellow Realtors and I were faced with multiple offers from as little as 2 to as many as 32 (for real!). With our buyer clients, we have been on the edge of our seats hoping we will not get yet another notification that an offer has been registered. With our seller clients, even we were shocked with the amount of (bully) offers on re-listed properties that did not sell last year.
Summing up what the Toronto Housing market feels like right now @mattcartoonist
Many have asked me this past week why properties are flying off the shelves in the month of January. Here are the 5 reasons why:
- Inventory is typically low this time of year anyway. Sellers who that did not sell in the third and fourth quarter of last year took their properties off the market and plan to relist in spring.
- Borrowing rates are so ridiculously low. Lenders are practically giving money away to Buyers. I’ve seen rates as low as 0.99% (my car loan is twice that).
- People are spending less money. The money one would typically spend on a gym membership, going out to eat & drink, late night karaoke, travel to work, and drycleaning, etc., in addition to 10-20% rent decrease from their landlord amounts to being able save for a down payment much easier and quicker.
- Buyers who moved out of Toronto still want a piece of it. With the rates so low, and not spending money, people are looking to purchase a small downtown condo to use as a pied-a-terre. That way, one can enjoy a night of eating, drinking and karaoke in the heart of downtown and have a place to stay after.
- Home is more important now more than ever before. Where one lives is now also become a place of work, school and play.
Hence, these factors combined together are making the housing market a little nutty right now.
Keep in mind though, the pendulum has swung far in one direction, but with the laws of gravity, it will fling itself in the other direction eventually – we just don’t know when. Will we see next a saturation of sellers coming on to market sooner this year?
Toronto Stats this Past Week
MLS activity from January 20 to 26 for residential properties:
Compare the above to the week before from January 13 to 19 when there were
4,104 for sale, 815 newly listed, 396 sold & 10,894 for rent.
TODAY’S NEWEST LISTINGS
TORONTO HOUSES FOR SALE
|Under $950k||$950k to $1.2M||$1.2M to $1.6M|
|$1.6M to $2M||$2M to 3M|
TORONTO CONDOS FOR SALE
|Under $500k||$500k to $600k||$600k to $700k|
|$700k to $800k||$800k to $1M||Over $1M|
|GTA Fixer Uppers||Ontario Foreclosures||Map Search|
(Email or call me directly for specific sold or off-market properties)
If you would like me to look up any other numbers for you, just call or text me 647-804-8601.
Let me know how I can help with your (RE)search.