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Filled with optimism and ready to buy, first timers are dominating the market
Julie and Grant Wethers would like to bolster the number of sales in the Toronto real estate market. They just can't find a house they want to buy. The couple have been searching for about six months now, since returning from Calgary last fall. And while prices in the Toronto area have slipped, they haven't tumbled the way many buyers were anticipating. "That's been a relief to a lot of people, but not to us," Mr. Wethers says. Grant and Julie Wethers check out a home with real estate agent Thomas Neal. The shift from a seller's to a buyer's market in Toronto has created a paradox: Homeowners are reluctant to list their properties because they fear they won't sell for a good price. Meanwhile, buyers such as the Wethers become increasingly frustrated by the dearth of quality homes to choose from. "It creates a lot of inertia in the market," Mr. Wethers says. While the overall number of listings is high, agents are complaining about a scarcity of alluring houses in the middle of the market. Meanwhile, properties listed higher than $800,000 or so are finally starting to move after months of stagnation in that slice of the market. Thomas Neal of Royal LePage Estate Realty has been helping the Wethers in their search. He knows other homeowners who would like to take advantage of the market softness to move up, but they can't find good "product," as agents sometimes call houses. Mr. Neal, who specializes in the Beaches neighbourhood, says consumers are still feeling uncertain about job security and the outlook for the economy. Those who do sell usually have a reason to do so - perhaps they are moving out of the city or retiring from their jobs. People who don't have to sell are choosing to stay put, he says, which means that buyers are finding few mid-range listings in the Beaches. Houses listed for less than $500,000 are still selling fairly quickly, Mr. Neal says, while those sellers asking between $500,000 and $800,000 often have to take a hit. At the top end, many high-priced new houses have been on the market for some time. The developers paid too much for the properties and now the new houses are just sitting while they try to get back what they invested, he says. Generally prices in the area are about 6 to 10 per cent lower than they were last year, which brings them in line with those in early 2007. "The gains of 2008 have definitely been wiped out in the Beach," he says. Recommend this article... |