As Toronto continues to outstrip Vancouver as Canada’s hottest real estate market, agents are however agitated by this trend as it is increasingly becoming very difficult for them to inform their clients that they could not get the house they bid one.
This situation is also very tough for real estate agent Chander Chaddah of Sutton Group Associates, who disclosed that it is high time that the hot housing market begins to cool down. But in February, the average home price in the city rose by 28% year-over-year.
It is rather unfortunate that people are with the thinking that real estate agents from benefiting from the situation. But far from that, real estate agents they face great challenges as more pressured is piled on them to find homes at all cost and also a prolong uncertainty as to when the market will reach its breaking point.
However, the leading problem agents get to face is the fact that demand and supply are moving in separate directions as reports from the Toronto Real Estate Board indicates that the number of new listing fell by 12.5% to 9,834.
This drop in new listing signifies tougher bidding wars for the available homes on the market and also great disappointed for buyers who are unable to win their bidding wars. For agents this is a very sad situation to see clients being bullied out of their ideal dream home.
For Chris Carroll, an agent with Royal LePage State Realty in Hamilton, the influence of Toronto home prices continues to affect other markets with buyers in the city making outrageous offers to purchase homes. This leads a lot of people unable to afford homes to other less expensive markets such as Hamilton.
Currently in Toronto, a home can attract more than 10 to 18 offers which leave agents to have sleepless night trying to work on strategies to get homes for their clients. Real estate agents also get to work late hours to see if their offers have been accepted.
Agents are also faced with other countless challenges from additional commission fees to increase MLS listing and advertising costs.
A more worrisome situation for agents is the future of home prices and even though no agent is pleased to have a real estate market go through a bubble, but Toronto housing market is not presenting proving otherwise.