Well the January stats are out !!! DURHAM REGION average home sale price in all areas is OVER $1 MILLION DOLLARS. We are seeing multiple offers on EVERYTHING.
First Time Home Buyers are struggling and there appears to be no end in sight just yet. Just this week a townhouse in Oshawa had over 51 offers. It was listed for $699,000 (inside unit) and sold for $1,171,900.... a TOWNHOUSE !!
They say "Drive Till You Qualify" Well guess what - a home in Lindsay was listed for $599,000 (single family detached no garage on a 60 x 94 ft. lot and sold for $765,000 in multiple offers. Lindsay. I remember you buy a beautiful home for under $800 not that long ago.
The Financial Post warns house prices could plunge 20% when "speculative fever" breaks.... but at this rate 20% will only take us back to maybe October 2021. Read the Article Here .
If there were to be 20% correction in prices, most who are buying right now, would basically lose their equity. To others who bought a year or more ago, they probably wouldn't care. If you are buying and selling in the same timeline, it probably is a wash but I am hearing more and more people, selling and moving out of Ontario and their idea of home ownership feels unattainable right now and for others, they want to "cash out" and wait for some sort of correction. Renting is another option but there are NO rentals out there either. There is a complete LACK of inventory. People need homes to live in - whether they are buying or renting and Ontario is having a housing crisis right now.
The Toronto Real Estate Board predicted an increase of 10.4% in house prices in 2021 and the ACTUAL was 28.0% higher. That is for ONE YEAR.
People say it will continue and speculators are taking out Home Equity Lines of Credit (HELOC) to buy investment properties, because the market can only go up, right ....?????? Well like anything, no one has a crystal ball. This would be a life changing decision should the market turn. People need to weigh all their options.
Right now, I feel like we are playing a game of "hot potato" when buying houses and when the music stops, you better not be the one left holding the damn potato. Sellers should take quick closing with very large deposits to protect their transaction. The longer closing, the greater the risk if you ask me.
Everyone needs to do their due diligence. People ask me all the time, what do I think the market will do? I don't know. I wish I did. I don't have a crystal ball. But I do feel like these prices can't go much higher.
A semi in Barrie was listed for $799,000 and received multiple offers and sold for $990,000. They only bought it in 2020 for $545,000.... not a bad return on investment. This is happening all over Ontario. Interest rates are all time lows. Inflation is creeping higher and higher. Just look at the price of gas and groceries. Today Statistics Canada came out and said 200,000 jobs were lost in February. You don't think this is going to have an adverse effect on our economy?????
Restaurants have been closed for the better part of the last two years... all the financial aid in the world won't bring them back to what they have lost. There are people struggling to survive and then we have those that are creating wealth in real estate. We will end up with a two-tiered society. Canadians deserve better. Your children deserve to afford a roof over their head. At these prices, good luck !!
Wages and House Prices are not in sync anymore. I'm passionate about this because I lived through it in 89/90 in my own personal life. This may be a reminder for some who think prices will never come down - because they haven't really other than a few hiccups in 2017.... I feel a rumbling.
When agents and mortgage brokers are selling their OWN homes and investment to get out while the going is good, says it all.
And like I have said many times, if you have a home to sell, you are probably fine to pay these prices, because you will be selling in these prices too... and as you know you would have to buy first before you sell. So you better have your house ready to go ... because you don't want to be caught if the government intervenes and you bought firm and haven't listed your home yet.....
They are saying we will have 3 maybe 4 interest rate hikes this year... we will see. Some have said 7 .. I don't even think a .25 rate hike will do anything to slow this down. The market is on fire !!!
If you aren't receiving SOLD prices, you should... because the list prices are nothing compared to the SOLD prices. There is a link or you can just email me back your street and I will set you up for the SOLD prices...
Well that's my morning rant ... :) I just want people to know what is going on out there. Homes listed for 1.2 are selling for 1.9 or higher in Pickering .. it's everywhere in Durham region as you can see from the image above.
Have a great day everyone and enjoy the weekend.
If you need any honest advice or have any questions about the market and your options, I am call/email or text away !!