A fickle housing market with price-sensitive buyers

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How much to ask becomes a precarious art, but Andre Kutyan of Harvey Kalles Real Estate Ltd. says less is more

Toronto's real estate market saw a sluggish start to 2019, but the second quarter appears to be reflecting a positive shift in consumer sentiment toward ownership housing, expert says.The Toronto area’s spring real estate market typically begins winding down in June, but a stretch of cold and wet weather that lasted into May could delay the summer slowdown.

“After a sluggish start to 2019, the second quarter appears to be reflecting a positive shift in consumer sentiment toward ownership housing,” TREB president Garry Bhaura says. But Mr. Kutyan has to reassure sellers that setting the correct asking price is crucial for getting the attention of buyers. A property that is priced too high out of the gate will stagnate, he says.

The house sat for 40 days without an offer, he says, despite the fact that more than 50 potential buyers had traipsed through. Agent says selling quickly inevitably leads to some homeowners questioning whether they should have asked for more.That’s a common theme for buyers these days, he says, with lenders becoming more conservative in their financing and after the federal banking regulator’s introduction of a mortgage stress test in 2018.Story continues below advertisement

Mr. Kutyan says the properties that consistently sell quickly come out around the $1-million mark or lower in Toronto. Neighbourhoods south of Highway 401 are still hotter than those north for the most part.

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