Last week in Toronto, 22 bidders entered a spirited competition for a detached house in the city’s east end. Most of those potential buyers likely didn’t realize that their most tenacious rivals were their neighbours vying for the same three-bedroom home.
“It was like an old-school 2017 offer night,” says real estate agent Shane Little of Sage Real Estate, who listed the property with his wife, Jenny Simon.
The enthusiasm stands out against a backdrop of trade tensions, jittery financial markets and an unpredictable economy, which have combined to make some buyers hesitant in many price ranges and parts of the city.
Buyers tend to be selective, cautions Mr. Little.
At 81 Woodfield Rd., the process turned into an “unofficial neighbourhood block party.”
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Mr. Little sold the three-bedroom detached house for $1.7-million after listing the property with an asking price of $1.199-million.
Eighty per cent of the bidders currently live within four blocks of the house in the area near Queen Street East and Greenwood Avenue.
In an uneven market, the strategy of setting an eye-catching price and a date for reviewing offers can be risky, but Mr. Little reckoned the house with a detached garage and leafy backyard would be popular with move-up buyers in a neighbourhood where semi-detached homes far outnumber detached.
The circa 1910 house sits across the street from Duke of Connaught Public School, says Mr. Little, who knows that a cohort of families with children who attend the school are keen to trade up to a larger house in the same neighbourhood.
Six of the bidders – who all live nearby – participated in a second round of offers. The ultimate buyers live one street over.
That specific pocket attracts buyers because it sits where Leslieville and the Beaches meet, he says.
The house on Woodfield was also appealing because the sellers have lived there for more than 30 years and raised their own children there.
“It really felt like a family home,” he says. “It’s just the type of street people don’t leave.”
Mr. Little says activity has picked up in recent weeks, but the market is still patchy.
“There’s definitely this push-pull,” he says of the dynamic.
In many cases, buyers are not throwing caution to the wind, he says.
“I think that’s why it’s a tale of two markets.”
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Mr. Little believes homeowners who genuinely want to sell are setting realistic asking prices and finding a buyer before too long. Those who are testing the market are seeing “days on market” pile up.
“If you are speculating for a price, you’re going to sit – you will.”
Mr. Little adds that some buyers are still on the sidelines because the inventory of appealing homes remains limited in popular neighbourhoods such as the Beaches and Riverdale.
Many downsizers who have been in their houses a long time are not excited to move to a condo when they see the options available, he says.
The homeowners also realize prices are far below record levels, so they aren’t tempted by a cash windfall.
“The money becomes a sticking point when there’s no other motivation,” he says.
In Toronto’s midtown neighbourhoods surrounding Yonge Street and Lawrence Avenue, some homes have been selling briskly, says Cheri Dorsey McCann, broker with McCann Realty Group.
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Ms. McCann points to a four-bedroom house at 57 Snowdon Ave. which drew three offers after it was listed with an asking price of $2,599,880.
The house sold for $2.62-million after two days on market.
A dated two-bedroom bungalow at 172 Roslin Ave. near Mount Pleasant Road and Lawrence Avenue East recently sold for $1.28-million after it was listed with an asking price of $999,999.
At 27 Taunton Rd., near Mount Pleasant and Eglinton Avenue East, a four-bedroom semi was listed with an asking price of $1.995-million and sold for $2.1-million.
Ms. McCann also points to a three-bedroom detached house with many original elements at 77 St. Germain Ave., which was listed in July with an asking price of $1.75-million.
The property failed to find a buyer, so in September it was relisted with an asking price of $1.585-million. The house sold after four days for $1.6-million.
Ms. McCann says the house, which needs “tender loving care” will likely be rebuilt.
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A few years ago, the same property would have likely sold for $2-million or more, she adds.
“It’s surprising the amount we’ve come down in all categories,” she says.
In some areas, homes are trading hands at 25 to 30 per below peak values.
She adds that some listings that landed on the market during the slower summer months were overlooked by buyers – even if the asking price was realistic.
“No one really was looking in the summer.”
Ms. McCann adds that buyers continue to pay a premium for a good location, and that the houses that spur competition tend to be move-in ready.
“The more challenging locations are harder to sell. The builders aren’t necessarily picking up the houses that needed to be renovated or torn down.”
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But she does believe that buyers are feeling more confident that prices do not have much farther to fall.
“It’s a tricky time for pricing because prices have adjusted so much,” she says.
Ms. McCann cautions that higher interest rates or an economic shock from the trade war with the United States could slow momentum.
Royal Bank of Canada economist Rachel Battaglia says the fragility of the housing market recovery in many cities was apparent in August, when national sales retreated to May levels.
“The pullback coincided with an escalation in trade tensions, which appears to have rattled buyer confidence while prompting more sellers to list,” Ms. Battaglia says in a note to clients.
Ms. Battaglia expects a gradual improvement in stability during the remaining months of 2026 and into 2027.