A semi-detached in North Riverdale sold for $3.1 million, double the average price for the month
After hitting new record prices in February, Toronto real estate agents say the market may have plateaued. “I think we’re going to see things stabilize,” says Odeen Eccleston, official broker at WE Realty, explaining that a mad rush to buy semi-detached or detached properties in February will now give way to buyer fatigue. and perhaps even a slight cooling in prices as supply increases in markets and COVID restrictions ease. Eccleston also believes that prices need to plateau or cool because the current market is simply not sustainable.
In February, a North Riverdale semi-detached home occupying just 2,000 square feet of land sold for $3.1 million on February 28. The renovated four-bedroom house at 12 Garnock was set to go on sale for almost $2.2 million. But according to sales agent Stephen Braun of Sotheby’s International Realty, a pre-emption offer was made hours before the property was listed. Braun declined to provide further details about the transaction.
The sale price is a record for the neighborhood and more than double the February average for 416 semi-detached homes, which according to the Toronto Regional Real Estate Board (TRREB) was $1,499,489. The average price of a detached house in the city reaches $2,073,989. The average home price in the Greater Toronto Area (GTA) was $1,334,544, a jump of 27.7% from the same average last year.
“Having the interest rate [hike] The imminence could also have caused more desperation among buyers,” says Meray Mansour, team leader at Meta Realty Group, explaining why February sales prices were higher than ever.
But Mansour and Eccleston believe the $3.1 million sale price at 12 Garnock was more of an exception than an indication of what semi-detached homes are looking for in Toronto real estate.
“Sometimes there are outliers, where the buyer really needs to be in that area because their parents are in that area and they have to look after them or they need their parents to help with the kids,” explains Eccleston, guessing why the buyer might make such a high pre-emptive bid. “The subjective value to them is greater than the market value.”
“You always get what you always get, this type of wildcard buyer who plans to stay forever,” adds Mansour, describing the person looking for their dream forever home. “And sometimes you get that buyer. Sometimes that’s not the case.
Mansour agrees with Eccleston that buyer fatigue is starting to set in, which, combined with slightly higher interest rates and an improving supply situation, will help drive prices down.
“I’m seeing more and more listings that aren’t selling on the bid date,” Eccleston says. “People get it and say, ‘Okay, those numbers are ridiculous.'”
Mansour and Eccleston also add that with the arrival of March Break and an easing of restrictions, they expect more people to go out and not care about real estate in Toronto. That seems to be the pattern, says Eccleston. Every time we’re locked down, spending more time at home, people spend more on homes.
“Last summer, when the weather warmed up and restrictions were lifted, we saw prices stabilize because people were traveling for the first time in a long time, people were enjoying their lives.
“Semis may very well be worth $3 million on average over the next few years,” Eccleston adds. “But right now, I really think we’ve hit a plateau.”