The house at 537 Deloraine Ave., in Toronto, is one example of a property coming on the market this month amid a rush of new supply.Harvey Kalles Real Estate Ltd.
Sellers in Toronto are rushing to list properties for sale now that the federal election is in the past and the traditional spring market has only weeks left to run.
Choosing an asking price is challenging and each listing needs a bespoke strategy in a market that gives buyers more choice than they have seen in years.
In some cases, a “too-good-to-be-true” asking price is the tactic of last resort.
Broker Andre Kutyan of Harvey Kalles Real Estate waited until after the vote to launch a traditional five-bedroom detached house at 199 Alexandra Blvd. on the open market.
Mr. Kutyan was hoping the election result would put one source of uncertainty for buyers to rest, and May is a good month in which to show the property’s backyard pool and leafy setting in Lytton Park.
The house with an asking price of $4.395-million had brisk showings in the first few days, he adds.
It seems many sellers taking a “wait-and-see” approach because of the unpredictable U.S.-Canada trade war and the federal election have decided not to procrastinate any longer.
“I saw a slew of listings come out on the Tuesday,” he says of the day after the election.
Suppliers to the real estate market – including photographers, painters, stagers and providers of floor plans – are all busy, he adds, which is a barometer of the amount of fresh supply still to arrive.
But sales remain sporadic.
In March, Mr. Kutyan listed a five-bedroom detached house at 65 Glengowan Rd. in Lawrence Park with an asking price of $9.995-million. He sold the property in April for $9-million to mark the highest transaction in the district since June, 2023.
But some properties above $10-million are languishing, he says.
“There’s a lot of stuff sitting in Lawrence Park right now that’s not moving.”
Setting a date for reviewing offers is risky, but an eye-popping price is sometimes the only way to entice circumspect buyers to book appointments to view a property.
At 210 Gowan Ave. in East York, Mr. Kutyan listed a two-bedroom detached house with an asking price of $699,000.
That’s far below the $1.05-million the homeowners paid for the 11/2-storey house in 2023.
The homeowners had listed the house one year ago with an asking price of $1.199-million but failed to find a buyer. They listed again in the fall with a different agent with an asking price of $999,000 without success.
In April, Mr. Kutyan advised the homeowners that the market is telling them something.
“I was very frank with them – you’re not over $1-million,” was his advice. “You’ve been overexposed. You’ve got to come out at a price that’s too-good-to-be-true to get some traction.”
Mr. Kutyan says 20 potential buyers booked showings and two weekend open houses were busy, but only seven offers landed by the deadline and none were acceptable to the sellers, who were reluctant to sell at a loss.
The following day, Mr. Kutyan urged the agents of the top two bidders to come back to the table. Only one did, but the improved offer resulted in a firm deal for $986,000.
Homeowners who need to sell are in a bind because prices are not likely to rebound soon, he adds.
“In the short term I don’t see anything that’s improving our market in price.”
In the Wanless Park area, Mr. Kutyan set another attention-grabbing price of $2.295-million for an updated ranch-style bungalow which might appeal to buyers who want a family home or others who plan to tear it down.
Mr. Kutyan says the property at 23 Rothmere Dr. has been listed multiple times at prices starting above $4-million.
When Mr. Kutyan took over the listing, he set an asking price of $3.495-million, then reduced as far as $3.149-million, but it still did not sell.
With the latest, more drastic, cut he set an offer date, which he had to wrangle around the election and the hockey schedule of the Toronto Maple Leafs.
“You can’t have an offer night on the same night as Leafs’ playoff games,” he says. “You’re going to lose a big part of your buying pool to this stuff.”
Four offers landed but he was still waiting to see if a deal would come together.
Davelle Morrison, a real estate agent with Bosley Real Estate, says the current Toronto market is the strangest she has experienced in her career.
Ms. Morrison recently listed a detached, two-storey house in the area near Eglington Avenue West and Keele Street with an asking price of $799,000.
The price for the three-bedroom house was set below market value in order to attract eyeballs.
“You really want to get people inside the house to fall in love with it,” she says.
On offer night, not one bid landed.
“It was not what we were expecting at all,” she says, because typically a detached house below $1-million is a strong draw.
Now she is planning to relist with a new price and offers welcome any time.
She has had only a trickle of showings at a triplex in Yorkville after listing the property with an asking price above $2-million in February.
She says buyers across various price ranges are rattled by the volatility of the trade war with U.S. president Donald Trump.
“I haven’t seen it like this before,” she says of the slow pace. “It’s the Trump tariff curse.”
Douglas Porter, chief economist at Bank of Montreal, says Canada may be dealing with as much uncertainty as any economy – especially since almost 20 per cent of gross domestic product is exported to the United States and major industries such as autos, metals and lumber face extra tariff carve-outs.
Last week, General Motors announced plans to cut production at its assembly plant in Oshawa, Ont.
Ms. Morrison says the climate is particularly challenging for homeowners who bought between 2021 and 2023. In addition to paying peak prices, they have shelled out for transaction costs and renovations.
In early May she’s bringing out a new listing in Little Italy. Most buyers would likely do some fixing up to the three-bedroom detached house, she adds, so she’s setting an asking price of $1.725-million.
She is also hoping the property will stand out compared with others that have been languishing at higher prices.
“It’s definitely better under $2-million.”
Ms. Morrison is also expecting another burst of supply in May. That may bring a new round of price reductions for current listings.
“The pressure is going to be on because houses have been sitting.”
Ms. Morrison adds that some buyers may be hesitating because they believe prices will slide further, but she cautions that it’s extremely difficult to pick the bottom.
“Nobody can time the market perfectly.”