There has been a lot of press surrounding the house in the Junction that had 32 offers and sold last week for $210,000 over asking. Everyone is talking about it and we have been getting calls from scared buyers thinking they can no longer purchase a freehold house in this crazy downtown Toronto market. We want to ease any panic with a breakdown of what caused that multiple offer frenzy, it simply came down to LACK OF INVENTORY.
With the Polar Vortex preventing people from wanting to go outside there is very little inventory currently available. As we speak there are currently only four homes for sale in the C01 MLS district under 700k and two of those houses have only come up for sale in the last 24 hours. The owner of the Junction house was a realtor and knew he would not have much competition by listing in this freezing weather and at a price point that would attract multiple offers. If the same house listed in the Spring, when there would be much more inventory to compete with, I can guarantee there would not of been 32 offers on that home.
If you are looking to purchase, do not panic. Multiple offers on freehold homes is a reality in the Toronto but 32 offers on one home is not and as the weather warms up we will see a lot more homes come up for sale.
If you have any questions or need Real Estate Advice please contact us anytime at firstname.lastname@example.org