Toronto house sales during the month of September have followed the trend we expected. The first ten days were a continuation of the lazy summer market from July and August. The last three weeks have shown an increased momentum in almost all Toronto neighbourhoods.
Our statistics have shown an uptick in bidding wars (which we define, perhaps too simply, as sales that end up over the listing price). Among detached homes in central Toronto, between 20% and 30% of sales in the past three weeks have gone over the asking price. This is up from the summer, and the statistical effect will show up when the monthly GTA sales figures are released soon. Anecdotally, we have also been involved in a variety of situations where properties have received multiple bids, but the resulting sales were still below the list price. What we draw from this is that sellers’ expectations need to be realistic, in order to take full advantage of the very real interest from multiple buyers. Mortgage rates are still low, and the demand for homes is there.
Our projection is that average sale values in the GTA will have increased about 3% in September, over the previous month. This is a typical seasonal outcome, and we expect to see another modest increase for prices in October.