Fewer home bids easing competition for some, but prices still high: brokers

Brokers say prospective buyers who have grown tired of going up against dozens of competitors to purchase a home are starting to get some relief from the frenzy seen over the past few years.

Brokers say prospective buyers who have grown tired of going up against dozens of competitors to purchase a home are starting to get some relief from the frenzy seen over the past few years.

Brokers in Toronto, Montreal and Vancouver say plenty of properties their clients are eyeing or selling are snagging fewer offers than months ago, when frantic bidding wars were the norm and many complained buyer anxiety was reaching new highs.

Sara Rowshanbin, a broker with Chestnut Park Real Estate Limited, says Toronto condos under 1,000 square feet and semi-detached homes priced below $1 million used to get 15 or more bids, but are now only receiving about five.

Fuelling the trend are buyers she's noticed are too nervous to wade into the market in case conditions quickly change, preferring instead to wait on the sidelines to see how strong the softening is and whether recent interest rate hikes will significantly reduce their buying power.

Marc LeFrançois, a broker with Royal LePage Tendance in Montreal, says many of his clients are questioning why they should bid significantly over the asking price if sales are down and are those who had the winning bid in situations without multiple offers are wondering if they paid too much. 

Montreal, Vancouver and Toronto's real estate boards reported the number of sales moderated in April even as average prices were still up from a year ago and in some cases from the month before.