According to a recent article in the Financial Post by Shantaé Campbell, the Canadian real estate market is sending mixed signals. While some areas have seen a cooling off in sales, property prices have remained resilient. Interestingly, the situation seems to be different in Vancouver and Toronto, with various indicators like bidding wars, home inspections, and offer dates showing divergent trends.
Bidding Wars
Cailey Heaps notes a resurgence in bidding wars this summer, particularly in Toronto. She shares the experience of a property in High Park-Swansea neighbourhood that fetched 13% above asking price in a bidding war. The situation differs from last summer, which was quieter and saw less activity.
Home Inspections
On the topic of home inspections, Cailey observed that while buyers are still opting for them, sellers in the Greater Toronto Area are increasingly bearing the cost. This pre-emptive action by sellers is essentially reducing the inclusion of inspection clauses in property deals.
Offer Dates
Although inventories are tighter than ever, Cailey mentions that the dynamics of the market have shifted due to rising interest rates. Offer dates, a strategy previously employed to attract multiple bidders, are now being used judiciously. The Heaps Estrin Team is strategically pricing properties to keep attracting interest and trigger bidding wars, even in this changing landscape.
The Luxury Market
Cailey also comments on how the luxury market has influenced the average days on the market for property sales. While only 4% of listings above $10 million have transacted since the start of 2023, the market remains strong for properties in the sub $2.5 million range.
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