On Wednesday, the Toronto Real Estate Board reported a 9.8% decline in the average selling price of homes in the City of Toronto in January 2009 versus January 2008. I still believe that a proportion of this decline is because lower-priced homes and condos are continuing to sell, while higher-end houses are less active.
Despite this decline, multiple offers have not completely disappeared. Just last week, two of my listings had multiple offers, one of which sold for $31,000 over the asking price. One of these homes was in a trendy neighbourhood close to a highly-regarded French school, and the other was a Downtown condo offering great value for someone willing to do a bit of decorating. It just goes to show that even though the market has slowed, if you are a looking for a home and you see something you like, you might end up competing with other savvy buyers if you do not act quickly. Even in parts of the US, where the market has declined much more significantly, there are reports of multiple offers in popular communities where bargain-hunting buyers bid-up well-priced homes.
Read the complete January 2009 Market Watch report from the Toronto Real Estate Board.