An adjustment to new pricing energizes the real estate market

The pace of the Toronto-area real estate market feels slightly more energetic in January as some aspiring buyers take tentative steps away from the sidelines.

“Showings are increasing – that’s a good sign,” says Christopher Bibby, broker with Re/Max Hallmark Bibby Group Realty. “I’m starting to see second and third showings. This is a sign of improvement.”

Prices softened over the fall, and sellers willing to price their house or condo realistically were able to strike deals during December and early January, he says.

“The sooner we come to terms with the fact prices have come down, the sooner we’ll see more transactions,” says Mr. Bibby.

In December, the average price in the Greater Toronto Area stood at $1,084,692 compared with $1,119,428 in September.

The average condo price in the central 416 area code dipped to $709,283 in December from $732,106 in September.

Mr. Bibby says some sellers became more willing to work with offers on the table as the fall wore on.

One set of buyers wrangled for several weeks to purchase a detached house at 78 Clonmore Dr. in Scarborough listed for 52 days with an asking price of $2.588-million.

Three days after Christmas, the buyers signed a deal for $2.275-million for the four-bedroom house.

“I think everyone was trying to establish where we were,” Mr. Bibby says of the lengthy negotiations.

With signs of renewed interest from buyers, Mr. Bibby listed two condo units for sale during the third week of January and sold both within seven days. He set asking prices that were in line with the market but slightly above the amount the seller was hoping to achieve.

“We were of the mindset we would need wiggle room.”

At 138 Princess St., Mr. Bibby set an asking price of $949,900 for a two-bedroom penthouse in the building’s south-west corner. The unit sold for $915,000.

“People are being budget-conscious in the market and don’t want to overpay,” Mr. Bibby says. “It’s very important for buyers to feel they’re getting just a little bit off.”

He adds that potential buyers who have been waiting on the sidelines are reading real estate forecasts predicting that prices will begin to rise again during 2024.

“A lot of buyers want to make a decision before the tipping point,” he says, adding that many potential buyers are taking note of optimistic outlooks based on the assumption that the Bank of Canada will cut its benchmark interest rate in the spring.

Jimmy Molly, real estate agent with Chestnut Park Real Estate Ltd., notes that last year the GTA tallied its worst year in sales since 2000.

The Toronto Regional Real Estate Board reported 65,982 sales through its Multiple Listing Service last year.

Mr. Molloy points out that the low number of transactions comes despite a surge in population growth in the past…