The Money Fight – Buyer Vs. Seller Summer Edition
It’s no secret that the money fight between Mcgregor and Mayweather pulled a lot of our attention and thus a big bank! As Mayweather retains his undefeated record and the Money Fight title.. The buyers and sellers of Toronto real estate continue the battle behind the scenes..
I’ve taken note of some very interesting shifts in the market from spring to summer, and likewise as we ease from the summer into the fall market..
Here’s what I am noticing..
During early spring, the sellers were at a huge advantage. It was as though it would take at least 10 buyers to overcome a seller into submission (in terms.. selling!) This shifted once the 16 Point Plan implemented by the government came into play in April. Buyers began to become more powerful in the market place and the tides turned back to being a buyers market (especially the freehold market). Once the shift in the market took place, buyers and sellers found themselves back in the boxing ring (negotiations table) going head to head in heated negotiations between sellers who were used to winning, and buyers who are now sick of losing and used their leverage to negotiate aggressively.
I took note of certain pockets of the city which were most affected. This makes me think of a townhouse I helped a client purchase at 22 Laidlaw (townhouse complex in Liberty Village).
This makes me think of a townhouse I helped a client purchase at 22 Laidlaw (townhouse complex). After searching with my clients for the right property, we found Th 1220, everything was great, except the list price $629,000.. The exact same townhouse had sold in March for $740,000, and for $650,000 one week prior to TH1220 being listed. This was a clear indication that the townhouse segment of the market was greatly affected due to the inflation that took place in the freehold market in the January-April segment of the year. I noticed that the sellers were in a position where they “had to sell” and understood the market had shifted since the early spring madness. My clients and I prepared our offer, a low ball some would say… We offered $600,000 firm. The sellers were somewhat insulted with this “low ball” and signed back at $620,000. We let the sign back expire as we knew we were in the advantageous position being in a slow buyers market summer.
Two days later I received a notification from the listing agent that the $600,000 offer would be accepted if we were to re-submit. So we did… Thus, getting my clients their new townhouse for $140,000 less than the same property sold 5 months ago.
After our sale price was recorded, a similar comparable sold for $620,000 next door. Some boxers don’t fight as hard as others….
As September is around the corner I am expecting a lot of buyers to come out of the woodworks. Numbers are being recorded on MLS every day and I believe the fact that only certain segments of the market have taken a hit, this is going to create a clear image that the Toronto real estate market has already made a soft landing…
Tie your gloves tight ladies and gentlemen.. The buyer vs seller fight’s are becoming more even!