Probably the number one question I get at open houses these days: is the market slowing down? And the answer to that depends on how you look at it. The number of sellers have certainly increased, but the buying pool I think for the most part has remained the same. It seems buyers no longer feel like if they miss out on something, they may not get another chance. I checked to see sales in Cambridge, this week June 5th through June 9th. There were 43 sales that week, and 79% of those sale were at, or above asking price (108% of list price). At first glance that seems like an indication that Sellers are still getting well over asking price in most of the cases. And you'd be right for drawing that conclusion. But when you examine the data from May 8th to 12th, we find 90% of the sales at or above asking price (110% of list price). We also know that inventory levels are increasing so all of this is to be expected. So have potential seller's missed the boat? Certainly not, but more so than a month ago, buyers have options and thus it's crucial that your list price be bang on. Do you have questions about pricing? How do you feel about the direction the market is heading? Comments are always welcomed.
I would never buy a condo! How many times have I heard a client say this to me when we first start seeing some homes together? Yet take a look at all the cranes in Toronto, and also closer to home, you start noticing that we are building up, and not out. The demand from buyers is there, and given that our hands are tied in bureaucracy, we are seeing more and more condos filling our sight lines. But you know what? It's a great sign of our strong economy, and it also happens to be a great option for many people who simply don't have the time, energy or money to invest in a freehold home. Condo construction represents a huge boon to our economy. The list of services employed in the construction of a condominium is as surprising as it is staggering: HVAC, Plumbing, Electrical, Cable, Concierge, Security, Elevator, Designer, Contractors, Engineers, Lawyers, Pool Specialists, Cleaning Staff, Painters, Flooring, Mat Service, Window, Roof, Landscaping, Energy Auditors, and on and on. Not to mention dental offices, restaurants, coffee shops, fitness clubs, grocery stores, all businesses that can be found in condominiums. Buying a condominium actually contributes so much more than just a roof over our heads, it's a massive boon to our own economy. Of course a lot of these industries and businesses participate in the construction of freehold dwellings, thereby contributing to our economy in similar ways. The usual objection to buying a condominium is almost always centered on the perceived notion that one gets nothing in return for the fees paid, and that they only ever go up. Feel free to use the Globe And Mail handy calculator to determine for your situation whether this statement is true or not, but there is no denying the financial return we all get from people buying more and more condos. So be sure to thank someone who just bought a condo! :-)
Another day, another bidding war, another house selling for well over the asking price. People it seems have had about enough, but no-one truly knows when relief is coming. Is it Sellers? Is it Buyers? Is it Investors that are driving the market?
Inventory in the Region of Waterloo seems to be at an all time low, hovering at around 1.5 months worth. This low supply has meant that houses today are selling for astronomical prices, certainly when compared to what we've seen in the past, and many are wondering when we're going to see an end to this madness. My belief is that what we are experiencing today, is here to stay for at least the next year or so. Unless a bunch of homes unexpectedly hit the market, or a new subdivision becomes available for occupancy, the demand won't ease. I wanted to examine the demand a little closer, to see what's driving it? Immigration in the region, and in Canada in general is at an all time high, and there is further talk of raising it even higher. This influx of immigrants to region, coupled with our improved infrastructure, which bring with it jobs, and people mean there will be great demand placed on housing. Add to this the number of purchasers we are seeing from 905, 416 and 647 area codes, means we are only competing for what little supply there is within our region, but also from a lot of GTA buyers who don't mind driving the hour or so each way, if they can save a couple of hundred thousand dollars. Let's face it, they are probably doing it already in the GTA. So while yes, there are a number of investors who are snapping up properties, my belief is that the demand non-investors place on the market, is what is driving the price of homes today.
Are you ready2move?
Buying and Selling Residential, Condominium and Investment real estate in the Waterloo Region since 2008. Oh, and also Ottawa! :-D