TORONTO, ONTARIO--(Marketwired - Feb. 2, 2017) - How frenzied is the Greater Toronto Area real estate market - and where can home buyers go to escape bidding wars? Online real estate brokerage TheRedPin today released new data that documents the rise in over asking sale prices and identifies the markets that are most likely - and least likely - to see homes sell above the list price.
Last year in the GTA, 16,000 freehold houses - detached, semi-detached and townhomes - sold for more than ten per cent over asking - a 160 per cent increase from 2015. Overall, one in five homes sold for ten per cent over asking in 2016. The number of GTA freeholds that sold at least 20 per cent over asking hit approximately 4,800 - up over 251 per cent from 2015, according to data from Multiple Listing Service and analysis by TheRedPin.
It's no surprise that the largest surge of homes selling for over asking took place in Toronto, where 37 per cent of total home sales in 2016 closed at least ten per cent over the list price - that equates to over 6,500 homes. Markham came in at a close second at 35 per cent, followed by Richmond Hill and Oshawa at 32 and 30 per cent respectively.
"The asking price is just one side of the story," said Amit Muthreja, a real estate agent at TheRedPin. "Buyers who are serious should ask their agent to look into the homes that sold in the neighbourhood over the last thirty days and what they sold for versus what they were listed for."
For home hunters looking to escape bidding wars, homes in Oakville, Brampton, Burlington and Milton were major markets which had the fewest number of homes that sold ten per cent over asking. Milton was the lowest with only seven per cent of home sales selling ten per cent over asking.
The condo market remains less frantic but is on the rise. In 2016, two per cent of GTA condos sold for ten per cent over asking. Although this is low compared to freehold houses, it's actually a 336 per cent jump from 2015 over asking sales.
"Affordability will be the term of the year for our industry," said Tarik Gidamy, co-founder and broker of record at TheRedPin. "Home buyers may need to compromise on their must-haves, like location or curb appeal but there are still loads of homes to be purchased at more reasonable prices, relatively speaking."
Greater Toronto Area freehold over asking house sales in 2016:
||Total 2016 Freehold Sales
||# of Freeholds that sold 10% over asking
||Proportion of freeholds that sold 10% over asking
For more information visit www.theredpin.com
About TheRedPin Brokerage
Founded in 2010, TheRedPin connects people, data and technology. Its platform carries the largest database of active residential listings in the Greater Toronto Area, with plans to expand nationally. TheRedPin is a challenger brand with a unique business model that streamlines the real estate journey, and provides exceptional end-to-end services and benefits not found at other traditional brokerages.