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Frenzied bidding wars in Toronto forcing buyers to rush offers

by Ephraim Vecina on 07 Apr 2017

Amid the city’s overheated demand and market activity, some home buyers in Toronto are bypassing inspections and rushing their offers, according to local real estate professionals.

“The bottom line is we are in a shortage of supply,” Century 21 Leading Edge Realty Inc. agent Tasis Giannoukakis stated, as reported by Bloomberg.

“That pressure is what’s causing everybody to remove the conditions on an inspection,” the broker said, adding that the greater accessibility of reliable information via the internet might have made prospective home owners more knowledgeable when it comes to DIY repairs and renovations.

Giannoukakis noted that bids of as much as $200,000 above asking price are not unusual, further contributing to the city’s long-running climate of home price growth and desirability.

As of February, the average price of a detached home in Toronto increased to $1.21 million, a development largely fuelled by persistent supply issues.

“When you are the only offer on the table, you can submit a conditional offer,” iPro Realty Ltd. agent Lorand Sebestyen said, adding that he warns clients on the dangers of skipping inspections. “But when competing with several other offers, you don’t have that luxury.”

Toronto-based home-inspection firm Carson Dunlop said that it has experienced a significant 34 per cent year-over-year decline in the second month of the year. Meanwhile, Ontario Association of Home Inspectors president and Parish Home Inspections head Murray Parish noted that his firm has suffered a 30 per cent drop in transaction volume.

 

Related stories:
Affordability conditions in Toronto and Vancouver essentially unchanged - report
Red-hot Toronto a source not just of profits but also of dismay for agents



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