Strata, a Toronto-based real estate platform, released a report this month saying canceled listings in the GTA have increased by 643 percent since the start of the year. Homeowners can end a listing if they no longer want to sell or if the contracts between sellers and listing agents expire before an offer is accepted. The number of listings terminated rose from 380 in January to 2,822 in June, representing a 643 percent increase over the past six months. “A lot of sellers are still operating under the impression that it’s a seller’s market, so it’s very high and they’re not seeing any action,” said Alex Hood, broker at Strata.ca. “At the same time, rising inflation and interest rates are making buyers feel uncertain about the market’s trajectory, which is causing them to be more conservative with their offers.” He added that the terminations are increasing at a time when there is a near tripling of total apartment inventory by early 2022. Hood said he believes the number of closed listings will decrease as sellers’ expectations begin to “align with the reality of the current market.” Strata estate agent Anna Wong said most sellers who have had their listings terminated are waiting for a better time to re-list or have made a “shrewd” decision to rent out their property. In contrast to the GTA’s oversupplied sales market, real estate experts say apartment rental inventory is down nearly 60 percent from January levels. “After a winter hibernation, rental markets are flashing with multiple offers, large rental deposits and very few days on the market,” said realtor Nate Légaré. Experts say some sellers may re-buy sooner rather than later, which could indicate an opportunity for buyers. “In a cooling market, it’s quite common to see a listing get terminated and then come back up a day or two later with an adjusted price,” said Strata real estate agent Galina Sheveleva. “This usually signals a few things to buyers: First, there is some wiggle room in the price the seller is willing to accept. and two, the seller likely needs or wants to sell in the current market.” “An uptick in terminated listings is when we typically see more negotiations and lowball offers … At this point, buyers know they have the upper hand in the market.”
