Is There Light at the End of Toronto’s Housing Tunnel?
If you have been watching the news lately there seems to be little hope for things in our Toronto housing market to get better for a long time. The barrage of cataclysmic forecasting is simply more than most of us can bear. But not all of us see the future as bleak as most of these forecasters do.
Case in point – my office keeps a board where all monthly home sales are displayed. In the last 30 days we have had 3 homes sold above the asking price. All three homes are located in central Toronto neighbourhoods.
The first home was listed in the high five hundred thousand range and sold for ten thousand dollars over the asking price. The second one was listed in the low five hundred thousand range and was sold in the mid-five hundreds. The third home was on the market in the low eight hundred thousand and it sold for twenty five thousand dollars more than the asking price.
So my question is … given what we all know about the housing market, why do some buyers still decide to pay more than the asking price for a home in Toronto?
Couple of reasons. Buyers are mightily relieved to see more homes available to chose from, thereby alleviating the pressure to buy right away.
Perhaps the simplest answer is that deep inside, most of us know that the world will not end and that all economic slowdowns do come to an end. Today there is even more reason to be optimistic when we look at the approach most developed countries are taking. For the first time in history there is a coordinated effort by governments to act in sync in trying to stimulate their own economies.
Let’s begin the process in Toronto and show the world that – in the words of Barack Obama – Yes, We Can.
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