Real estate “blood sport”

This prime double lot on Freeman, west of Eastwood, sold in a matter of days.

By Michael McCann

The real estate market right now reminds of the recent fight between Floyd Mayweather and Manny Pacquiao.

It’s pretty much a blood sport.

It’s not a pretty sight, and those who are looking to buy a home are taking a beating.

Round after round, listing after listing, buyers just can’t seem to win.

Here’s the blow-by-blow ringside commentary on how a typical house sale plays out in Toronto as well as in Birchcliff.

“Get ready for a bidding war”

A home just gets listed on MLS and I know the perfect buyer for it.

Tucked away in the broker’s comments, which are not accessible to buyers, I see dreaded words “offers, if any, welcomed after 6 day marketing period’.

This is realtor-speak for “suit up and get ready for a bidding war”.

In those six days my buyers go through the house and love it, but so do 80 other potential buyers.

When the time arrives to present offers, the listing agent informs us we will be in competition and are one of ten offers.

This is the new normal facing today’s home buyers – being one of ten, one of 25 or one of 42 is a definite reality..

At the end of the night one buyer is declared the winner while the others face just another round of defeat.

Most buyers have been through this situation half a dozen times and I honestly have to say I feel horrible for them.

They have faced multiple rejections and for some they have shelved the idea of buying a home.

I know their frustration and I have some advice for them.  Things happen for a reason and you have to persevere if you want to buy a home.  Housing markets do change and you want to be ready when it does.  So don’t throw in the towel and keep swinging till you hear the bell.

Now it’s time to look at the last 5 months of housing sales:

Birchcliff – Cliffside Home Sales in May, 2015 – 24 homes sold

Source:  Toronto Real Estate Board. Excludes commercial properties, condos and vacant land.

Birchcliff/Cliffside

In May 2014 we had 43 homes sold and in May of this year 24 homes had new owners – that is a difference of 19 homes or a drop of 44%

The average sold price in May 2014 was $589,704 and in May 2015 the average price came in at $612,235 – an increase of 3.8%  (Unlike last month where a $3 million home sold, this month the highest home selling price was $750,500)

May 2014 it took on average 17 days and in May 2015 it took 11 days – a difference of 6 fewer days on market

Toronto Real Estate Board 

11,013 sales in May 2014 while in May 2015 Toronto home sales were 11,706 – Up by 6.3%

The average selling price was $584,946 in May 2014 and in May 2015 the average price was $649.599 – Up by 11.1%

May 2014 it took an average of 21 days to sell a home where in May 2015 it took 18 days

Birchcliff – Cliffside Home Sales in April, 2015 – 36 homes sold

Birchcliff/Cliffside

In April 2014 we had 37 homes sold and in March of this year 36 homes changed hands – statistically no change  

April  2014 a Birchcliff seller was getting an average sold price of $616,243 and in April  2015 the average sold price jumped to $829,994 – a wild 34.7% increase (This was also the month where home in Birchcliff sold for close to $3 million.)

April 2014 it took an average of  11 days sell a home and in April of this year it was 9 days

Toronto Real Estate Board 

9,660 sales in April 2014 with April 2015 showing  11,303 sales – Up by 17%

The average selling price April2014 was $578,354 and April  2015 the average price came in at $635,932 – Up an even 10%

April 2014 it took an average of 20 days to sell a home and in April of this year only 18 days

Birchcliff – Cliffside Home Sales in March, 2015 – 29 homes sold

Birchcliff/Cliffside

In March 2014, 42 homes sold while in March of this year 29 homes changed hands – a difference of 13 days or a drop of 30% in homes sold

In March 2014 the average sold price was $595,576 while March 2015 the average sold price came in at $628,021 – an increase of 5.5%

March 2014 a Birchcliff home took on average 23 days to sell, but in March 2015 it took only 17 days – 6 fewer days to sell

Toronto Real Estate Board

8,052 sales in March 2014 with March 2015 showing 8,940 sales – Up by 11%

$557,982 was the average selling price in March 2014 with March 2015 at $613,933 – Up an even 10%

Last March it an average of 21 days to sell a home and March 2015 20 days

Birchcliff – Cliffside Home Sales in February, 2015 – 20 homes sold

Birchcliff/Cliffside

February 2014 we had 23 homes sold while February of this year 20 homes changed hands – a 13%  decrease

February 2014 the average sold price was $596,638 while February 2015 the average sold price came in at $710,906 – an increase of 19.6%

February 2014 it took on average 11 days and in February 2015 it took 17 days – 6 days longer to sell.

Toronto Real Estate Board

5,696 sales in February 2014 with February 2015 showing  6,338 sales – Up by 11.3%

$552,859 average selling price February 2014 with February 2015 coming in at $596,163 – Up by 7.8%

In February 2014 an average house took 26 days to sell while February of this year only 24 days

Birchcliff – Cliffside Home Sales in January, 2015 – 18 homes sold

Birchcliff/Cliffside

January 2014 we had 18 homes sold while January of this year 18 homes changed hands – no increase

January of 2014 the average sold price was $497,773 while January 2015 the average sold price came in at $613,113 – an increase of 23.2%

January 2014 it took on average 18 days and in January 2015 it took 24 days as well.

Toronto Real Estate Board 

4,103 sales in January 2014 with January 2015 showing  4,355 sales – Up by 6.1%

$526,695 average selling price January 2014 with January 2015 coming in at $552,695 – Up by 4.9%

January 2014 it took an average of 36 days to sell a home where January of this year 29 days

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According to the Toronto Real Estate Board, our local housing market is defined as Birch Cliff/Cliffside and the boundaries can be seen below.

View Birch Cliff / Cliffside in a larger map