Sellers Sell Now Buyers Desperate
I know the housing market in Toronto has been a sellers market for a number of years, but currently I was at a loss for words by what transpired this week.
I was involved in two multiple offer situations with two different clients; one in the east end Greenwood-Coxwell area and the other in Davisville Village. Both great areas, but completely different price ranges.
Greenwood-Coxwell House
3 bedroom, 2 bath and a furnished bachelor apartment in the basement listed at $560k. This property was a bit of an anomaly for the area. The lot was wider than other homes on the street, but it was extremely short for a typical semi. And I mean 40 feet short. Lot size 30 feet x 40 feet. It backed on to an auto shop building of cinder blocks. What it did have was 3 bedrooms, updated kitchen, showed well and a private drive with 3 car parking. But literally no backyard…none! There was about a 4 foot long deck. We would call it a great “condo alternative” in the industry. The best option would be to create a side yard and lose a parking spot or two. With 11 offers it sold for $777k. Huh? What? Excuse me? Loss for words when I found out. There is no way in hell that property will appraise for that price. I guess the buyers didn’t care and they had the money (large downpayment). I don’t understand that price at all. I would never have let my clients come even remotely close to that price and we still had a great offer! Time to move on.
Sellers Sell Now Buyers Desperate
Davisville House
Now technically we didn’t even get the chance to bid on this property as it sold with a pre-emptive offer in one day. Out of town client was very interested, but the timing didn’t work. It’s all about timing in this business. Listed at $990k sold for $1.15 million. I saw the value (on the high side) around $1.1 million and you could argue that $1.15 million could appraise, but just goes to show you that good product sells quick and for a lot of doughjo!
There were a few other houses I had my eye on that sold for astronomical prices as well. The lack of inventory is pushing prices up and up and up. Nothing new to the Toronto market. It’s simple economics of supply and demand combined with low interest rates and population growth that are driving the Toronto market. This will continue throughout this year.
ATTENTION SELLERS! Sell now. If you have been thinking about selling now is the time. You can smell the desperation of buyers. After what I witnessed this week buyers are doing anything they can to secure property in Toronto. Take advantage of it.
Contact david@davidspeedie.com or text/call 647 244 3931 for all your real estate needs.
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