FOMO is alive in the Toronto real estate market. Buyers, many with a fear of missing out, are coming out in droves like never before.
Anyone who purchased a home in the last two years will have already seen a 20-30% price increase in their home. With the average detached home costing $1,886,413 in Toronto, it is sometimes difficult to understand how there is still so much demand in the marketplace. Since the Pandemic has allowed many employees to work from home, buyers are looking outside the GTA in places as far west as Caledonia and east to Bowmanville and Oshawa, where inventory is just as scarce as downtown Toronto.
In a seller's market with meagre inventory, pricing below market value and holding back oers is the best selling strategy. As a seller,
you are in the driver's seat and can really ask for any closing date you like. It is always a good idea to list your home when inventory is low in months like January, February and March to take advantage of low inventory instead of waiting until April like everyone else.
Sadly historical data and comparables don't mean much in this type of market. Almost all homes are sold with no conditions. It seems as though new benchmarks are being set every week. I find it really all depends on that buyer's track record (how many oers they have previously made and lost) and how well their Realtor has prepared them for this market. Typically 80% of the oers I receive are not in the running. So as a buyer, don't get discouraged when there are double-digit oers on a home you love because more than half of the oers are not really being considered by the seller.