Well here we are at the beginning of December ... it feels like 2020 has been a complete blur with Covid-19 and lockdowns, etc. But the housing market has yet to suffer !!! Well that is not true, the condo market in Toronto is taking a hit but everything else is on fire. How long can this continue, who knows?
With the average detached home sale price in Pickering being almost $1.045 M, it certainly is pushing people further and further east. Whitby is now at $943,772 for a detached home so naturally people are going further out to Bowmanville, Newcastle, Port Hope and beyond. Cottage properties are soaring in prices. I think everyone working from home has caused those in Toronto to move to the burbs and find some bigger living quarters and thus pumping up the Durham prices.
The interest rates are at an all time low and that is helping to drive up the prices but I do think with the talk of vaccines on the horizon, we will see a little movement in the interest rates so if you have a variable rate mortgage, you may want to look at locking in soon... but it is always best to speak to your mortgage broker. If you don't have one, I would be happy to suggest a few that I can recommend.
Here is a quick look at the numbers for November 2020 compared to November 2019
So you can clearly see sales are up 24.3% from same month last year ! Prices are up 13.3% ... who would have though that 7 months into a pandemic that we would see real estate prices on the rise like this. Not me that's for sure.
I do not see, at this time the market slowing down at all. I think we will see the first quarter of 2021 remain status quo... with multiple offers and bidding wars. I just am not sure about the 2nd quarter. Eventually this has to simmer down. The effects of Covid-19 have yet to be felt. The government is still throwing money at everything to keep things going but once the government stops, I think we will see a very different story. When that is anyone's guess. Small businesses are suffering across Toronto and GTA. Malls will likely see lots of retail space becoming available as people are all ordering online. Hence why the importance of good virtual tours and photographs when selling your home. The first impression is online. I have always been a firm believer in promoting my listings with the best in photography and virtual tours.
I wish I had a couple investment properties now, because I would be "dumping" them ... and cashing in . LOL. Hindsight is 50/50.
Buyers are so very frustrated. They are at the point of exhaustion. Some are just throwing out numbers just to win. Increasing the value for the next home that pops up. There was a townhouse in Whitby listed for 599K and it has 22 offers and sold for $750,000... that being said, the next one on that street will want 800.
Most offers are firm now with no conditions ... and that to can be scary for buyers. Even in Lindsay, Peterborough and Kawarthas they are seeing multiple offers. I guess if you are working from home, distance isn't an issue just make sure where ever you go, the internet is good so that you aren't standing on a rock out front of your new home to get a signal to call your office. :)
I have also heard of a few Sellers that sold first and now cannot win in multiple offers and are starting to panic. This is also a tough spot to be in. In a market such as this, I would recommend buying first and then listing your house within days of buying. It's definitely a sellers market and if you have sold and keep competing with 20 offers to buy and losing, it is a stressful situation to be in. In one case, it was an agent that told them to sell in Toronto and move to Pickering as the market was slower there.. which isn't the case. Now the seller is upset that they sold and can't find a place. That is why it is extremely important to work with someone who works the market you looking to buy in. They know the prices, the agents and the areas. Google them.
I will attach a link to the entire Market Watch for November 2020 if you are interested in looking at it HERE. This is the full breakdown by areas etc.
And if you don't believe me - todays article in the Toronto Star - https://www.thestar.com/business/2020/12/03/detached-houses-drive-up-pandemic-home-sales-and-prices-in-the-gta.html
If you need any advice or are thinking on making a move, I would be happy to meet up and discuss your specific neighbourhood and sales. My website also now displays SOLD PRICES on the right hand side or you can click on this link and view SOLDS in your area. Visit: https://durhamsolds.ca/sold and see sold for Toronto and Durham and beyond. Always good to keep yourself in the know. If the last sales were 750 and a listing comes out at 600, chances are you shouldn't go see if it your top amount is 650. You are just wasting your time. Seeing solds can help show you the difference between the list prices and the sold prices. It's crazy.
With that being said, I want to wish everyone a safe and Covid free Holiday Season. Remember this too shall pass and we will all get our "Unmasked" lives back eventually. Stay patient, stay strong and be safe.
Your friend in real estate