Toronto Homeowners Expecting May Prices in An October market & Unpredictability with Bidding War

The city’s fall real estate market is off to a active start, with September numbers showing that buyers are still making lots of purchases in the suburbs and bidding up prices across the Greater Toronto Area when they finally find a house that suits them.

Still, agents are reporting unpredictable action when it comes to offer night – with some properties attracting multiple offers while others sit.

Boris Kholodov, an agent with Royal LePage Real Estate Services Ltd., Johnston and Daniel Division, says one possible reason that some houses aren’t getting the expected bidding wars is that homeowners look at what their neighbour’s house sold for in the spring and then want to add a few hundred thousand to the asking price.

“When the market is so hot, sellers are looking for premium prices.”

The problem with that scenario is that prices tend to peak in May. By that time, bidders may have lost out on several properties and they will bid irrational amounts above asking to make sure they don’t lose again.

And while lots of houses are attracting multiple offers this fall, they don’t often draw the sort of spring frenzy that will see 30 bidders trying for the same house.

Reference: The Globe and Mail

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http://www.theglobeandmail.com/…/toronto-h…/article26709624/