Market Insight for February 2

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.