As housing sales return to positive territory, parts of the local market go from ‘famine to frenzy’
(Source: Toronto Star)
Annoyingly for buyers, rejoicingly for sellers, bidding wars for Toronto real estate have surged back from extinction.
House sales for the first two weeks in May were in positive territory – 3 per cent above the same period in 2008 – for the first time since the market’s tailspin last fall.
“Buyers have returned to the market with the realization that apart from manufacturing and construction, the GTA economy is holding up well,” said housing analyst and economist Will Dunning. “The surge in the stock market and the change in tone from the U.S. are also lifting confidence.”
And with confidence comes a crush of buyers. Among them is developer Ross Cammalleri, who last month had his eye on what appeared to be an underpriced bungalow in the family-friendly area of Yonge St. and Lawrence Ave.
Cammalleri figured it was worth $500,000.
What he didn’t expect were 10 other interested buyers. “That was a surprise, especially since the winter market was dead.”
He ended up with a winning bid of $564,000, $134,000 more than the list and equivalent to 131 per cent of the asking price.
Read Tony Wong’s full article “Real estate bidding wars make a comeback” in the Toronto Star (May 31, 2009).