As September is now upon us and the cool crisp morning air approaches, we all think of Fall weather, nice sweaters, stylish boots, pumpkin lattes and maybe some warm comfort food... but no one is thinking about the real estate market being on fire. Especially after everything that has happened since March !! But a what a whirlwind the summer of 2020 has been. So let me tell you a few things that have happened this month.
The market is crazier than I have ever seen in years. This is worse than March of 2017. If you bought in the peak of the market and have seen a decline, you will now notice your property is property worth that more than what you paid in March and early April of 2017 before the Government introduced the Foreign Buyers Tax.
Well August was an amazing month for sale prices and days on market. Homes weren't lasting 3 to 4 days without bidding wars and multiple offers. If you are StreetMatch, you will surely have noticed the above asking prices selling in your neighbourhood. It seems to be almost across the Board.
A few of my clients have been in this multiple offer situations and some have won and some have walked away disappointed but the reality is, some of these house prices are just mind boggling. We had an offer on one property listed for 999,900 in Pickering - had 19 offers and sold firm for $1,260,000...Over a quarter of a million dollars over asking price ! Was the house worth that? Tough call. The market dictates prices. There was another one on Kate's Lane listed for 999,000 and sold for 1.2... so it wasn't just a lucky Seller. It seems there are lots of Buyers in that price range.
There was another one in Pickering - listed for 799,900 - held offers - apparently had multiples... they didn't like what they saw so they did a price change to 979,999 and it is still for sale.
One in Oshawa was 549,900 - sold for $710,00 with over 19 offers as well.
So if you are holding off thinking wait for next year, I would maybe re-think your strategy. I think these prices are high ! But there is also a lack of inventory and when the demand is there and no supply it pushes the prices UP. Mortgage rates for a 5 Year Mortgage are under 2%.... that's crazy. The rates are also making it more attractive for Buyers to jump in right now but I am not so sure they may not regret this in a few months. (This is my personal opinion - I do not have a crystal ball)... I wish I did.
So what next? Well I believe not that the Landlord Tenant Board is slowly reopening we will see more and more properties come on the market by Investors who have had issues getting rent from tenants and just want to cash in. I think that will add some inventory to the market.. I also think the weather changing may slow it down a little bit...not so much September and October but November and December once the snow starts flying.
We are also see a lot of "separations" or "divorces" and I am sure being stuck home hasn't helped some of these couples and they are now thinking on selling .. but at least the market is on their side right now. Prices anyway.
And let's face it, the Government needs tax dollars and housing makes a lot of money . This isn't going to be their biggest concern right now. Land Transfer Tax is flowing in .
My last five listings have sold over asking in August. Marketing is important. Exposure is important. The more people you get through that house the more chances you have of getting multiple offers. If the traffic is slow, there is an issue... especially right now.
August will definitely be higher than July.... I have no doubt . As I am writing this - I checked TREB stats and they are now released for August. I was right. Check it out !
Sales up 40.3% from same month last year and Price up 20.1% from same month last year !!!
As these prices sustainable once the effects of Covid truly hit? Will there be a second wave?
All these are continuing factors on how this will play out ! If you want the specific area you live in sent to you, just shoot me an email and I will send it for Pickering, Whitby, Courtice etc. Information is always free.
I just thought I would give everyone a quick update on what is going on... on a side note, I am seeing lots of businesses in the Mall not re-opening and once the outside dining stops on patios, I wonder how many will be able to stay afloat. It is crazy times ahead of us folks, so buckle your seat belts and make informed decisions with professionals that help guide you through the process !!
I did get 3 nice Google Reviews this week and that is probably the biggest compliment a Buyer or Seller can give me. So for those out there - thank you !!! It is truly appreciated. I am always happy to work with people and earn their trust and respect.
Remember ~ you have to kiss a lot of frogs before you meet your Prince people !!! LOL... Just sayin !!!
Have a great day !
Happy Long Weekend and Stay Safe Out there.
To all the kiddies going back to school... Let's keep them safe and our teachers too !