Competing bids are a factor in the marketplace once again, with well-priced listings—especially at the
entry-level price point—experiencing multiple offers. Properties priced at fair-market value will likely
sell quickly for top dollar. The overall pressure on sales and price is significant across the board – and
it’s not likely to subside unless more inventory comes on-stream.
“The level of frustration is growing, as pent-up demand builds,” says Polzler. “For every successful offer,
there are those that will walk away empty-handed. They’re thrust back into the buyer pool and the
process starts all over again. Some buyers are upping the ante, while others are considering alternate
housing options. Still, purchasers remain cautious in their bids, with most careful not to max out debt
service ratios.”
Recent revisions to lending criteria will add fuel to the fire in the short term. Buyers considering a
variable rate mortgage will step up their plans for homeownership in the next month or so just to get in
under the wire. In the longer term, buyers will adjust, but move forward. Compromise has long been a
reality—particularly in the larger centres. This simply means they may go smaller or further in their
pursuits.
“It’s been a 180 degree turnaround from this time last year,” says Ash. “It’s clear that real estate from
coast to coast has roared back to life and markets are once again firing on all cylinders. The vast
majority of markets are now recovered and fully-evolved, with all segments working in tandem. At the
luxury price point, activity was brisk in seventy-three per cent of centres surveyed, with momentum
ramping up in the remainder. Opportunity exists in some areas, but the question is for how much
longer? ”
Market 2009 2010 % +/-
Greater Toronto 20450 12052 -41%