Canadian Realestate Magazine forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Pocket listings cut into MLS sales

Notify me of new replies via email
Guest | 31 Mar 2013, 11:25 AM Agree 0

Greater Toronto Area Realtors reported 7,765 transactions through the Toronto MLS system in March – that’s down 17 per cent compared from the 9,385 recorded a year early. It also means that for the first quarter of 2013, sales came in at 71,678, representing a 14 per cent slide from a year ago.
Realtors are blaming the slowdown on an ebb in demand, pointing more directly to the mortgage rule changes ushered in last year.
"While some households have put their decision to purchase on hold as a result of stricter lending guidelines or the additional Land Transfer Tax in the City of Toronto," said Toronto Real Estate Board President Ann Hanna, “other households simply haven't been able to find the right house due to a shortage of listings in some market segments."
Still, industry experts such as Tahani Aburaneh, author of bestseller Real Estate Riches is asking investors to look beyond the MLS system in order to score properties that remain very much in demand.
“For multifamily investment properties, investors will have to look at pocket listings and other private sites to get those listings,” she told CREW online at the recent Toronto Investor Forum. “A lot of Realtors are now keeping them off of the MLS, because they are in high demand and they sell easily.”
In some cases, the move also allows real estate agents to get a lock on the entire listing or share it in-house with colleagues representing the buyers.
But no matter how you slice it, says experts, investor purchases are helping lift sales prices even as volumes fell in March.
The average selling price for that month was $519,879 – up by 3.8 per cent compared to March 2012. The average price in Q1 2013 was $508,066, or 3.2 per cent compared to the first quarter of 2012.
  • Robert Ede | 04 Apr 2013, 08:01 PM Agree 0
    Notwithstanding and Lobby Group's Talking points ...the 17% "slump" is being compared to the 3rd best First Quarter in TREB history (2012 was also the 2nd Best First half in history).
    In addition "Baby Boomer Grandma/pa" aren't selling their homes in keeping with "traditional pattern"
    a) 65 ain't as old as it once was - grandpa/ma are staying working and active longer so house still useful;
    b) they can live on "retirement savings" w/o cashing in house for funds to live on;
    c) they don't feel like trading in a familiar paid-off house worth $500-900K (they pay contractors for maint/upkeep they cannot do themselves) to go into 1/3 sized condo at slightly less purchase price with taxes and maint.fee of 1000-2000/mth
Post a reply