Toronto’s real estate market is finally starting to show some signs that things are cooling down as more houses come on the market and demand begins to soften slightly.
The real estate market typically gets off to a slow start in January and February each year and the competition tends to gradually heat up as we move closer to the peak months of April, May and June.
Things have been a bit different this year. The market got off to a very quick start and as early as January we were noticing an unseasonably high number of multiple offers for houses. Since May we have noticed that the number of multiple offers on homes has decreased significantly when compared to the activity we were seeing in March and April.
It’s tough to spot these micro trends simply by looking at the basic statistics published by the Toronto Real Estate Board each month so we dug a bit deeper to find some numbers that illustrate this trend a bit better.
The chart below shows the percent of houses in the City of Toronto that sold for more than their asking price in 2011 and 2012 including the first two weeks of June. We are interested in the number of homes selling for more than asking because it is a very good proxy for the number of houses getting multiple offers. In most cases purchasers would not offer a price above asking unless they are in a multiple offer situation.