Well the final numbers are in and we’re not surprised that April turned out to be a fantastic month. Our feelings about the rush to beat the imposed “Miller” land transfer tax before the December 31st deadline and the winter weather we experienced this year “are” the main factors to a late start to our Spring market.
Now that the snow has melted and the Open House season has started, lets not buy into the perceived truth the market is tanking. All those months buried in snow, remaining indoors and listening to media created a false belief that what has happened in the States will happen here.
The real issue at this time is the lack of supply of good quality homes. Presently, there are homes on the market that aren’t moving. These are the ones that are in need of repair and the properties that are not priced right. These are also the listings sitting on the market because the Seller’s expectations are set too high for the quality offered. The reality is that the moment a renovated home that is priced right hits the market, we’re still experiencing multiple offers. Homes sales in Mississauga, Leaside, East York, Davisville, North Toronto, Victoria Village, Wexford West, Richmond Hill and Markham have picked up and selling quick.
Let’s look at the last week occurence. A couple of our Ultimate Agents Grahame King and Sylvia Santarelli listed a property for sale in an area where homes have sold for anywhere between $360,000 to as high as $400,000. Homes with renovated basement apartments have sold as high as $450,000. Taking everything about the home into account, the sellers decided to market the home at $369,900 and further decided to withhold the presentation of and potential offers for 6 days.
The result: The home had 8 offers and sold for an outstanding $112,000 over asking price. Was the home under priced? Did it compare well to other homes in the area? What did these agents do and how did they market the property to achieve such a favourable result for their client?
I inquired and discovered that their marketing plan is outstanding and they advised their clients correctly on timing the home listing when there was nothing else for sale. The classic Supply and Demand principle applies and let’s not forget there are still 7 other buyers still looking for that special home. If the market was slowing, there wouldn’t be buyers.
Tim Syrianos
RE/MAX Ultimate Realty Inc., Brokerage
Filed under: Home Buyer tips, Home Seller tips, Toronto Market Watch
