It seems everyone, wherever you go, is talking about the real estate market. It’s no wonder as we are experiencing a phenomenon we’ve never seen before. I’ve got some rambling thoughts to share with you on present day realities in our local real estate market.
Here is just a sprinkling of the sales we saw in the last week:
A condo in Wasaga Beach listed for $229,900 sold for $242,000
A house in Meaford was listed at $109,900 and sold for $140,500
A house in Collingwood was listed for $399,900 and sold for $517,500
Two others were listed at $244,900 and sold for $383,000 and another at $305,000 sold for $345,900. We also saw high end properties sell well above their asking prices so in over words, it would appear that every sector of the market, in all price ranges and all urban areas have the potential to experience multiple offers.
I’ve noticed that the highest percentage over market sales tend to be in the lower priced homes and in homes that are very well presented. While some sellers are forgoing things like home staging, it is still advisable in many cases if they hope to really attract competing offers and top dollar.
For buyers who end up in competition on a home, we are seeing many drop their conditions for financing and home inspections. Some are bringing home inspectors along on property showings or doing inspections in advance of making offers. This carries with it the fact that they may spend money on an inspection and still not secure the house but on the other hand, may save themselves a big headache later on. What is troubling me is when people are removing financing conditions who shouldn’t be. Just because they have a pre-approval, it doesn’t mean the house is approved by the lender. Appraisers are increasingly having a hard time justifying many of the sale prices we are seeing and in the case of high ratio mortgages, mortgage insurers are being more careful and asking for more information than we’ve ever seen before.
Many people buying are first time home investors wanting to get in on the hot market. You would think this should create a flood of rental properties but as of yet, we are not seeing this at all which defies explanation. In fact, we are seeing competing offers for rentals and monthly rates have skyrocketed as well.
This is not a healthy market nor is it sustainable. I keep hearing people say it’s great for agents but they are fully wrong. We all have loads of buyers with very little to show to them and when there is something available, we may work to prepare and present many offers before they either get a home or give up. We all live in our communities too and it is painful to see how hard it is for first time buyers, renters and people relocating to get into the market and to find a home. I for one would be happy to see measures that would cool down this over-heated market and the sooner the better.