21 Offers on a 900,000 Condo in Toronto

Catchy headline, right? Well, this one is a true story. Last week we submitted an offer on behalf of a client for a condo listed at Front and Bathurst. Our Market Valuation showed that the Condo would likely sell for about $800,000 to $900,000 on its bid night. But when we were informed that it had 21 Offers, our jaws dropped, and we knew it would surpass our Market Valuation. And it did. Our clients backed out - a good move considering the turn of events.

We have been working in a market with multiple offers since the market started to pick up this year. Certain asset classes and locations are experiencing it more than others. Micro-market activity. We knew the entry-level price points for Detached and Semi’s in Toronto proper received multiple offers and were in high demand. But an $800,000 to $900,000 Condo with 21 Offers is uncharted territory in this current climate.

Interestingly, and important to note, right after this Condo sold, comparable listings came out and did not command the demand of its sold neighbour. Some of these comparable condos are still on the market or only received one or two offers. Timing is everything.

Inventory is at historical lows. We know this. At this point, it’s common knowledge. And as a result, it’s driving up demand. But it’s not consistent. Looking back to the highly anticipated week after Easter Weekend, we anxiously awaited listings to hit the market. And they did not come; as a result, inventory that was currently on the market started to sell and sold at blow-it-away prices for the next couple of weeks. Buyers were getting antsy and eager.

Fast forward to this week, we have seen a bunch of listings come out (finally!). Where were you post-Easter Weekend? As a result, fewer Pre-emptive/Bully Offers and a sigh of relief for our clients as they get out there with some selection to view and bid on. Timing is everything.

In the past decade plus in this business, we find real estate interesting, exciting, stressful, and unpredictable. Research and staying up-to-date in real time is invaluable. How can clients make a decision when they don’t understand the bigger picture? It’s fast-moving, and situational. And although we try our best to produce quantitative data to keep clients informed, residential real estate is inherently emotional.

Always a different day and never a dull moment. Let’s see what the rest of the spring market brings. We’ll keep you posted.

Any questions? Feel free to reach out.