Toronto Houses Selling for 100% of Asking! What's the Deal?
Toronto Houses Selling for 100% of Asking! Why So Little Room for Negotiations?
There's increasingly little room for price negotiations in good ole Toronto
these days with our homes selling at 100% of asking within 3 weeks, according to
the latest data.
The Toronto Real Estate Board released its mid-month resale housing
figures, which also showed prices were up in all sectors from a year ago, and
especially in single family homes.
Banks Fighting for Quality Mortgage Business by Cutting Mortgage Rates
Strong competition between home buyers in many parts of the GTA resulted in
sellers getting their asking price in a short period of time. In fact homes
are selling for 100% of the asking price, on average, suggesting that sellers
are very much in tune with the current market conditions and know the fair
market value of their home.
It also suggests buyers have little chance of scoring a deal below those
increasing values, in fact many buyers are facing multiple offer
situations. It just may be that more buyers are turning from the condo
lifestyle to the single family home option. With two of the top lending
institutions fighting for mortgage business, an offer of 2.99% on a 5 year
closed mortgage is definitely helping today's buyers increase their purchasing
power. Some buyers aren't taking a chance that these low rates will be around in the summer
or that there will be any relief in house price increases.
While there is increasing inventory in the condo sector, builders are not offering the same volume
and variety on single family residential properties and there is only so much of a supply in the single
family house sector.
House Prices Up 9% from Last March
The average home listed in Toronto in February sold in 24 days! The
average selling price for transactions between March 1st and 14th was $502,155 -
up by more than nine per cent compared to the first 14 days of March 2011.
Listing inventory is currently low, if you are considering selling, maybe
this is the time to take advantage.