Saturday, January 16, 2010

Hurry before we change our minds

Is that next months advertising caption? As house prices are increasing in the regional Toronto GTA market (Etobicoke, Mississauga, Oakville) Buyers are continuing to chase the available listing inventory and prices are being pushed ever farther upwards.
  • There will be interest rate increases in 2k10 that are related to income tax and RRSP savings accounts.
  • US borrowing has been unabated.
  • We are in the Firm GRIP of a Seller's Market.
  • Investors are still coming to Canada because we are a safe haven.
  • CMHC may be phasing out the 5% downpayment program.
  • CMHC and the banks may be cutting back amortizations on mortgages making it harder to qualify.
So here we are; You looked at the house; You hesitated, and they... took it off the market because by waiting 30 - 45 days they may very well get an extra 3 - 5%. All seem to be holding back offers until a few date and time.

Lets look at that in plain numbers ~ with an entry level detached starter home now starting at $400 thousand; multiple offers and demand are pushing up an average of $12 - 15,000 over asking. Of course, you could buy a private, but I have rarely seen private sell above last sale and never in multiple offers. I doubt FSBO's would be equipped to create a bidding war with actual bonafide bidders.

Be prudent that what you are bidding on is within your means to live in comfortably, when that mortgage renewal happens in a few years. Hurry before its gone takes on a whole new meaning.

No comments: