Houses selling over asking price is becoming the norm, these days. Kinda crazy. Sometimes a house is just listed under market value to attract a frenzy of buyers. An old tactic that has worked well in larger urban markets. Today, that tactic is being used in smaller communities, too.
What’s unclear is if this selling tactic is contributing to houses selling for more than they’re worth. And what is a home worth, anyway? I always thought a house was worth what someone was willing to pay in the open market. That’s still true in most cases, today.
When I see reports of houses selling for $100k, $200k and $300k over asking, it makes me wonder. How long will this market last? Will it crash? And if so, when? It’s hard to make forecasts and I can’t see into the future, but let’s examine this a little.
WHEN WILL THE HOUSING MARKET CRASH? Continue reading “Panic buying? When will the housing market slow down?”
George Ross is Donald Trump’s Executive VP. He’s Trump’s senior advisor and has worked with Trump for 30 years. You’ve probably seen him on TV on ‘The Apprentice’. This week, he was quoted as saying Canada’s real estate market is undervalued, not overvalued. That’s quite the opposite of what the so-called experts have been saying for 8 or 9 years. (by the way, where are those experts now?)
If you listen to his interview, he makes some good points. Office properties have more upward potential than residential properties. But the residential market follows the Office or commercial market. He also says that buying a house for a quick flip isn’t a good strategy. It may sound good on the TV shows, but it’s a risky game to play. Mr. Ross says more fortunes have been lost in real estate than have been made. Continue reading “Trump’s George Ross says Canada’s Housing market is undervalued….”
Bad news travels 10 times faster than good news! It’s just human nature that we can’t seem to escape. We seem more likely to gossip about someone’s misfortune than their accomplishments.
Here’s a negative headline…. YOU LOST APPROXIMATELY $355,000, SO FAR, IF YOU’VE BEEN WAITING TO A BUY HOUSE SINCE 2008. Read on to see understand how and why.
Take Wednesday’s headline in the Financial Post, “Bank of Canada warns house prices are overvalued by up to 30%” . WOW! How’s that not gonna get your attention? It certainly got mine. I immediately had to read this article. But the more I read, the clearer it became that this statement wasn’t exactly true.
The article pointed to a semi-annual report that is put out by the Bank of Canada entitled, Financial System Review December 2014. That headline is an attention grabber.. And like most media headlines, it’s not the full story. In fact, it’s not an accurate reflection of what the Bank of Canada report had to say. If you look at Stephen Poloz’s (Bank of Canada Governor) comments, he says “there is some risk that the housing market is overvalued, and our estimates fall in the 10 to 30 per cent range”.
But he’s not done there.. Continue reading “Housing bubble? Waiting for the crash before buying has cost you 60% in the last 6 years.”
Should I buy now with interest rates still hovering at record lows, or wait for prices to fall? When will house prices fall? … and by how much? What will the interest rate be in the future when house prices fall?
These are the questions most Canadians asking themselves these days. It’s no secret that Real Estate values are at an all time high in most parts of the country. The calls for a housing correction, crash, or bubble have been going on for almost 10 years now but it hasn’t materialized.
I won’t get into the discussion here about whether house values will drop or crash or when that could happen.. because I don’t think it should be part of the buying decision. That’s not a typo. Market timing is a dangerous thing. Stock advisors will tell you this. Buy now, if you are able to commit to the plan. Read on to see why I believe this to be true. Continue reading “Buy now or wait for house prices to fall? The results may surprise you…”