Despite the horrific temperatures that have left Torontonians shivering in our boots this January, the spring market, which often begins well past winter's deep freeze, has already jump started just days after the holidays have ended.
Already buyers are competing aggressively for the limited supply of freehold houses currently coming to the market.
Last week one of our buyers competed on a quirky, rambling semi-detached dwelling located on a busy arterial road near Ossington and Davenport. Sandwiched between two demand neighbourhoods yet still a tad 'fringe', this charming property had plenty of space yet was in dire need of most building components. With a decrepit furnace, no central air, a symphony of knob and tube wiring, a converted garage with wood/soil contact (hello to the risk of termites) and a crack in an already leaking foundation, this fixer-upper had been priced at $599,000. That it received six offers and soared 14% over list surprised us. But it didn't prepare us for this week.
Yes, our Buyers knew the tastefully upgraded end-of-row 3-bedroom+ den house with nanny suite near Symington and Dupont would go into competition. A realtor's own house, it was aggressively listed at $639,000 with a holdback on offers being reviewed for seven days. And, well, after the fourth day on the market there were already over 100 viewings booked. That the listing broker garnered some exposure as BlogTO's House Of The Week certainly helped fuel the interest.
However, this wasn't a fully-loaded recently-renovated house with all the bells and whistles. The kitchen was older with laminate counters and linoleum floors. The washroom was modern but didn't' have heated floors or a jet tub. But it did have a great space plan, offered an insouciant charm, and had potential income from the basement suite (albeit not legally-retrofitted) which could help out with the mortgage. However, by the time the offer deadline arrived, there were 32 offers on the property! This was shocking to everyone, and resulted in a final sale price that spiked 33% over the asking price!
Here is the article in the Toronto Star that was published less than 24 hours after the trade, signaling how much attention this sale has garnered.
Without question this sale is the “talk of the town”.
While the spring Market has arrived earlier than is typical, this frenetic behaviour is not unusual. Here's an amusing
rant post from last year called House-Hunting In Spring which shares more insight into the dynamic we've experienced for several years now.
However, we at urbaneer.com want to offer you some insight and reassurance.
Did you know there are seasons to real estate? While Canada's climate has four distinct seasons, the Toronto real estate market has just three. And it's the spring market where the momentum of demand cycles to its highest while the supply of good housing stock is at its lowest. In other words, we're about to experience a whole lot of 'cray cray'! For a quick lesson on the seasonal dynamics of the Toronto real estate market, here is our Seasons To Real Estate newsletter.
Are these sales a case of 'the early bird gets the worm?'.
We prefer the proverb 'Everything comes to those who wait!'
Welcome to the spring market! Better buckle up!
~ Steven and the urbaneer team
Tales From The Real Estate Trenches