The Truth Behind our “Oversupplied” Market

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Is there really an issue with too much supply, or is it something else? There’s a pattern looming over the marketplace, and that is with the flooding of so-called listings, making the marketplace look more saturated than it actually is. “The surge in new listings that has garnered so much attention recently overlooks the fact that many properties are not selling on the scheduled offer night. The same properties are then listed again through the Toronto Real Estate Board”. One listing will count as two, or even three when properties are being listed and then re-listed. “The problem is, some of those listings are just properties being listed for the second or third time within the same month”. This over exaggerates what the marketplace really looks like, driving the statistics out of whack. This should not come as a surprise when some agents price the value of properties under fair market value, where the hope to see some sort of bidding war backfires and agents then resort to re-listing.


Now back to my initial question of supply being the issue. The event of listing and re-listing is actually making it look like the market is flooded with supply, when that is truly not the case. It’s not that supply is overabundant, it’s the amount of re-listings that is. We have seen “a lack of supply and a crush of demand, which has sent prices soaring in recent years. That trend continued through April, when the pace of sales slowed.” When taking into account the amount of duplications, the numbers in the 416 area aren’t actually so ridiculous. Maybe we will see a change in the way real estate practices are run, and hopefully then we will see a true reflection of what the market looks like.

Taken from an article written by Carolyn Ireland from The Globe and Mail. 

https://www.theglobeandmail.com/real-estate/toronto/flood-of-toronto-listings-not-all-that-it-seems/article35096543/

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