Homes selling for over their asking price might look like a hot market, but according to the website Business In Canada, that gives the wrong impression about the real estate market.
If that were an accurate depiction of the market, you’d expect that sellers routinely get more than they are asking for. But this isn’t the case. The Toronto Real Estate Board tracks the ratio of the selling price to listed price on a monthly basis. This ratio has oscillated between 97 and 100 per cent for all property types in the Greater Toronto Area since the beginning of 2012.
Within the city of Toronto, the ratio of the selling price to listed price is higher than that of the metropolitan area at large; single-family homes have a higher ratio than multi-family properties. In other words, the segment you’d expect sellers to have the most pricing power in – detached homes within the city – does indeed enjoy this advantage. But the differences between the ratio of selling price to listed price, both by property type and geographic area, are not immense.