Their confidence is as intractable as a red wine stain: house flippers and the workers that trim the sector’s edges insist all remains well in Hogtown real estate.
While houses are selling for less than their listed price and are staying on the market longer, sellers like Sam Cohen insist the outlook is good, and house stager Anne Bourne says she is in high demand.
“When everything happened in November, everything kind of ground to a halt,” Ms. Bourne said of her Staging Works business.
“In the last couple of months I’ve been getting more calls than ever. I think I’m going to be busier than ever this year.”
Last month, national home resales hit their lowest levels since the mid-1990s, slumping 41 per cent from a year earlier, according to the Canadian Real Estate Association.
Toronto’s house prices dropped 8.2 per cent over the same period: The average house price last month was $343,632, compared to $374,449 in January, 2008.
The slower market is in evidence across the city as For Sale signs linger on front yards, but the realty industry is maintaining its breezy grin. After all, obvious displays of disappointment are often considered as dangerous as a red flag in a bull ring.
But despite the assurances, cracks are appearing in the facade. Ms. Bourne said real estate agents are fighting for listings, with some offering to pay for house staging in a bid to win a listing.
And home owners who have never considered house staging are booking consultations at $200 a session to get advice on how to win over prospective buyers.
“From what I’ve heard from real estate agents, it’s a hard time right now. It’s been really hard to sell these houses,” Ms. Bourne said.
At the top end of the market, Bernod Singh recently slashed the asking price for his luxury home by $6-million, bringing it to a more affordable $10.8-million. But he is still trumpeting a positive tune.
“We’ve priced it for a quick sale,” Mr. Singh said of the 18,000-square-foot Bridle Path home that has been on the market since 2006. “I would love to get the full price, believe me … but I have to be realistic.”
Further down the pricing scale, house flipper Mr. Cohen says it will likely take weeks, instead of days, to sell his rebuilt house in the Avenue Road and Highway 401 area.
Still, he’s able and willing to wait for a buyer willing to accept the $1.2-million price tag.
“I built a house that probably will attract the kind of client that will be willing to pay the price I’m asking for,” said Mr. Cohen, who used to be a financial adviser but now renovates houses full-time.
Mr. Cohen first flipped a house about two years ago, and it sold just days after going on the market. This time, he expects it to take about a month.
“I expect there might be some individuals who might come in to look for a bargain,” he said.
“I hear people come in with ridiculous prices to offer. But again, a house in the right place will sell. Not as fast as previously, but it will sell eventually.”
SOURCE: Globe and Mail, TENILLE BONOGUORE, February 19, 2009
