When will multiple offers ever end?

The spring real estate market has started, and there is some confusion on how the market is doing?

Many experts, banks, economists and real estate firms have varying opinions on what to expect for the Toronto real estate market in 2013.

As a “soldier” in the trenches, of the war zone of Toronto’s real estate market I can share with you what I see going on. One of the benefits of my particular practice is that I work with a wide range of buyers and sellers, both first time and all the way up, both end users of homes and condos…as well as investors.

Yes this is a large area to cover. But working By Referral Only provides me with constant qualified clients who want the services of an expert with a proven track record and superior knowledge.

Here’s what I see going on in the first quarter of 2013.

The heated zone that is seeing heavy artillery is houses in the well established areas of Toronto. People are flocking to the traditional hot spots of Bloor West Village, Swansea, Yonge and Eglinton and Prime Riverdale.

Houses priced in the $600,000-$850,000 range are almost always seeing multiple offers…any many of them! What do these areas have in common? Subway access, established neighbourhoods and very good schools.

Interesting to note is that houses priced in the $1,000,000-$1,300,000 range have cooled in the same areas. With the exceptions of always hot areas of the Beach, Leaside and Banbury, homes can sit on the market in this range for 30-60 days. This is what they should do! No one should feel rushed when dropping a small fortune on a home.

The condo market is doing just fine, contrary to what you may be hearing. And don’t mix new construction condo news with resale news; they are two entirely separate markets. Actually for years when one area faltered the other saw increases in activity!

Doing fine and being in the “hot zone” like the homes mentioned above, means that if you are buying or selling an end user type condo (there is a difference for some investors) that pricing is crucial. The reason being is that the market is more balanced with condos and the buyers have much to choose from. But they are shopping! This is not the time to “test your market price” but if you show it well and price it right, you will be one of my happy condo sellers. For my condo buyers…they have been happy for the past 9 months. J

Interesting to note, smaller units (and lower priced units) have slowed in sales. This area was hot last summer and cooled in the fall. Today there are tons of properties for sale under $300,000 and some good deals are to be had. But competition is fierce and both end users and investors are taking their times before purchasing. The recent mortgage rate cuts are of big interest to these buyers so it will be interesting to see how this plays out over the next few months. Will the super low rates be enough to get this segment of the market moving?

There are plenty of opportunities in this current market for many buyers and sellers. The key is to be laser-like dialed in to what is happening in your specific market. We have so many sub-markets in the same categories (condos for example) that you could be doing yourself harm by not knowing the facts.

Happy house hunting to all!