Toronto's val property market has deep-pocketed baby boomers and ambitious young millennials face condo units – albeit in widely different neighborhoods and price segments.
In late October, Gay MacLeod of Chestnut Park Real Estate Ltd., six contenders had been fighting for a three bedroom apartment with a suggested retail price of $ 2,795 million.
The three-bedroom, three-bathroom unit in Granite Place sold for $ 3,585-million, or $ 790,000 above the asking price.
Ms. MacLeod says the building on St. Clair Avenue, just west of Yonge Street, is coveted by baby boomers from nearby neighborhoods like Moore Park, Deer Park and Forest Hill.
The building, which sits on top of the slope that runs through Midtown Toronto, offers views across the core of downtown to Lake Ontario.
"It seems to be where that demographic group is gathering."
The unit that caused so much competition offered 2442 square feet of living space, two balconies and south-facing opposite views.
Ms. MacLeod says two of its customers were recently startled when they left an offer at $ 800,000 above the list price for a unit at Scrivener Square, only to lose a buyer who had paid $ 1 million over questions.
Scrivener Square, which sits just outside Yonge Street in the Summerhill area in the south, is another sought after complex, she says.
The unit there, listed with a asking price of $ 2.4-million, sold for $ 3.4-million.
Ms. MacLeod says that they and other agents have estimated a fair market value of about $ 2.7 million or $ 2.8 million, but boomers with wealthy wholesalers sell large homes and then pay everything they need to secure a unit .
"They want what they want, they do not want to be shy about fighting it," she says about that cohort of buyers.
Property sales in the Greater Toronto Area rose six percent in October compared to October 2017, according to the latest figures from the Toronto Real Estate Board.
New listings slid 2.7 percent last month compared to the same period last year, while active listings remained.
The lack of listings helped raise the average price for GTA to $ 807,340 for a 3.5 percent increase from October last year.
Seasonally adjusted sales in October fell one percent from September, while the average price was one percent higher than in September.
the average detached house in the GTA chose a price win of 1 percent in October of the same month last year. The average condo price in the GTA rose by 7.5 percent in the same period.
TREB & # 39; s Market Analysis Manager, Jason Mercer, points out that revenue growth year-on-year is higher than annual growth in new offers for five months in a row.
Al Daimee, a real estate agent with Royal LePage Signature Realty, says that the sale of homes in the segment is slower than $ 1.5 million.
He accuses an interest rate hike by the Bank of Canada and wanted fluctuations partly on the stock market in October, possibly interrupting some buyers.
"Some people are afraid to jump in because they do not know what the future holds."
Sales prices for prices under $ 800,000, though, are disappearing quickly.
"The entry level is on fire."
Mr. Daimee says that starters who have taken out a pre-approved mortgage at the end of August or September would like to buy before the three-month period has expired.
The interest rate hike in October has prompted some house hunters to move quickly for the additional increase in January that many economists predict.
Mr. Daimee recently sold a one-bedroom unit on the Hudson with 26 offers. The 561 square foot unit at 438 King St. West was listed with a asking price of $ 499,900.
Mr. Daimee set the asking price low to draw attention, but he says the answer was far more insane than he expected.
About 80 parties booked presentations, he says.
"The requests for sickness bids were in the first place a few days."
The salesmen decided to send the bullies away and to stick to the planned tender date. The unit sold for $ 115,000 above the asking price, or $ 614,900.
Mr. Daimee believes that a large part of the demand in that price category comes from the framework of young millennials who have a good income, but fears that the price will be priced out of the market in the future. If they buy now, he says, they can take out a mortgage with a fixed interest rate for five years. Investors were also in place, he adds.
"Competition drives prices to the maximum."
Mr. Daimee says the unit in the Hudson has a clear view to the west that is unlikely to be blocked by future developments.
"That had a guaranteed clear picture – that's what drove a lot of the action."
Mr. Daimee also recently sold its own condo unit in the King West district in September to buy a house in Cabbagetown.
He was asked to take the step after the gap between house prices and single-family homes had shrunk.
After his apartment raised $ 1,725 million, he paid $ 2,138 million for the semi-detached Victorian.
Because he no longer pays monthly maintenance costs for the flat and the house has a basement rental suite, Mr. Daimee's monthly expenses will even drop after the transaction.
Mr. Daimee expects November to be another busy month in the condo area.
"There are still 25 buyers left for that one bedroom that we have just sold."
Ms. MacLeod expects that the competition for houses in the center will continue because there is a concentration of large, expensive houses in the area.
On Granite Place she set an asking price close to what she considered market value. She looked at the price a similar unit had achieved a few weeks earlier and abolished $ 100,000 of her price because the other unit was recently renovated.
She was not surprised to receive multiple offers, but the final price was higher than she expected, she says.
"There is such a demand and it is an aggressive question, they are retired CEOs and they are used to getting what they want."
Ms. MacLeod says that the buyers in this segment think that this will be their last home and that they are not worried about paying too much. They are more concerned about preserving the nuptial harmony than any future gains, she explains.
Meanwhile, the large detached houses where those buyers say goodbye are not taken away so easily.
"They take more time to sell," she says.
Looking at the final weeks of 2018, she expects condo owners to continue offering their units if they want to sell. Homeowners are more likely to wait until spring when they are not there, she says.
Normally the market slows down in November and December, she says, but some vendors will continue to state whether the timing suits them.