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