We’ve spoken in the past about strategy, but I’d like to revisit the topic because I’m frequently asked about it. Specifically, as the pace of sales begins to taper off, people want to know if the trend of listing a home below value, and having the market drive the price up, is becoming less common.

My simple answer from a macro-perspective is ‘no.’ Obviously, Toronto is a city of neighbourhoods, and in all these micro-markets, there will be pockets that behave differently. But looking at the region as a whole, I am not seeing evidence that sellers are moving away from pricing their homes below market value to expand their pool of potential buyers. In fact, I’m seeing a lot of it. There is significant demand out there for real estate. It may not be the frenzied demand we saw in the spring market, but it’s there. Remember, it only takes two would-be buyers to create a multiple offer situation.

Right now, we’re still working in a market that’s artificially narrowed due to mostly closed international borders. These are early days as we reopen our country and our city to the world. Soon, the border to the US will start to fully open, then immigration will begin again, and will continue unabated. Once sellers no longer have to rely mainly on local buyers, housing demand will creep right back up to where it’s been and more. In the coming months, I would expect to see a lot of homes selling well over the asking price.