Housing bubble is coming… again?

You’ve seen them before.. but they went silent for a few years.  I’m talking about the housing bears.  The pessimists that say house prices are too high and will crash.  A housing bubble.

Are they right?  Maybe.  But here’s the thing.  We’ve been hearing that house prices are too high for over a decade.  One of the more vocal pessimists is David Madani, Economist for Capital Economics.

HOUSING BUBBLE?

Madani was on BNN this past week saying we are in a ‘Full blown housing bubble’.   Hmmm, that sounds familiar.  Let me think… when did I hear that before?  Oh, that’s right, 2011.   He said, we could see house prices drop by 25% in 2011.  And he was completely wrong. (hope you didn’t listen to him). Read the rest of this entry »

Paying over list price has become normal.. but still requires a cool head.

Sold over asking

Here’s a recent article in The Star where I provided some advice and comments on bidding wars.

The trend continues.  Properties are selling for above asking price in hot markets across the country.  In Toronto, it’s becoming the norm.  Some say an epidemic.

Last month I reported on sales that sold for 128% and 138% of list price.   We’re talking about selling prices of $1,035,000 and $1,150,000.

A few days later, we saw a home sell for $1,308,808.    That’s $479,880 above asking price or put another way, 158% of list price.   Sale prices this much above asking are either a clear case of listing too low, in the attempts of attracting multiple offers, with the hope of getting a higher than normal selling price… or, someone is paying way above market value for reasons beyond my understanding.

Read the rest of this entry »

158% of List price! Housing market is hot!

3 Ross St Last month a house in Toronto’s west end made headlines when it sold for $200,000 above it’s $639,900 list price.   That’s 131% of the asking price.   Earlier this week, I shared some astonishing sales from the weekend.   Two houses sold for 138% and 129% of  asking price.   Both homes were in the $1,000,000 plus price range.

Yesterday, this house at 3 Ross St, in Toronto was listed for $829,000.   It sold for $1,308,880.  That’s 158% of asking price or $479,880.   This semi-detached house is located in the College and Spadina area of Toronto.  It sits on a 20′ x 116′ lot.

We can debate whether these are sales tactics (you know, list way below market price to attract buyers and create a buying frenzy) or if this means the market has gone crazy.   To me, this just reaffirms my belief that this is a seller’s market.  There is a pent-up demand for housing.   And when the supply is low, higher prices usually follow.

Interesting, yesterday, a report from Tourism Toronto showed in 2103, 9.22million hotel rooms were booked.  Up 2.8% from 2012.   I’m not sure there is a direct correlation between the visitors and house prices but Toronto has certainly become a world-class city.   Maybe our prices reflect that, too?

Your best interest is my only interest.    Like this article?  Share with a friend.   I reply to all questions and I welcome your comments.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

2 sales in GTA this weekend went for 128% and 138% of List price!!

home-prices-up

Wow, who said the housing market was slowing down?   Check this out..  2 sales from this past weekend in Toronto show the market is red hot!

455 Manning St Feb 20-14 sale

This house at 455 Manning St is located in the College and Bathurst area of Toronto.  It was listed for sale at $749,900.   And it sold for whopping $1,035,000 or 138% of list price!   This is a 2.5 storey semi-detached home with a 19′ x 126′ lot.   Wait, it gets better.   The description says, and I quote “Attention Renovators/Investors/Handymen”.   A quick look at pics inside leave much to be desired.   This place is need of some serious home improvements.    All I can say is WOW!

362 Lippincott st feb 22 -14 sale

How about this one at 362 Lippincott Street located in the Bathurst and Bloor area of Toronto.   Listed at $895,001 and selling for $1,150,000.  That’s 128% of list price.   The lot is 17′ x 101′.   This is a 100 yr old semi-detached Victorian with major updates and renos.   It certainly looks nicer than the first.   But selling for 128% of list price?   I’ll repeat myself, WOW!! Read the rest of this entry »

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