Luxury waterfront property in Oakville !

I would take the real estate news with a grain of salt. Same with news out of the stock market, both need sellers and buyers to make money. Most people don't get into real estate because they think its a find buyers and convince them to buy the house game. No houses sell themselves. Real estate is a listings game. The more listings you have the more buyers find you. The more listings you have the more people believe you are successful and want you to sell their house. You get a commission if you sell it or not. So the only selling you need to do, is convincing people its time to sell their house.

Real estate needs sellers because they also become buyers.

 

Just replace the word "house" in your posts with the word "Ferrari" and you can see similarities

Prices have ramped up over the last couple of years, but there's evidence (WSJ article about flat-lining auction results) it is starting to slide. No difference for houses.

The only sad part is a lot of people are going to get burned, mostly young people. It happened in the U.S. Just be thankful it won't be you/the rest of us.

After that happens, I'll wait to grab a nice acreage out in the Fraser Valley and a certain silver Testarossa with a custom red leather interior

 

Yeah, a lot of young are going to get burned. Especially the ones who put $50k down on a $800k house with $70k in income.

Id still buy now. But it would be on a 20 to 30 year plan. As in never move again. If under 10 years, expect to loose some money.

 

+1

Speaking of which.. I was looking at buying another multi-unit residential building in Toronto.

Selling agent said it was a "multiple offer - bidding war"

I asked.. 'who the F does a bidding war on a multi- unit building ??' So I laughed

I didn't make an offer because it was stupid.

I told him, "you keep your building.. I will keep my money"

Agent calls and said it didn't sell.. not enough offers

So I laughed again

As you can tell, I enjoy laughing... But this is getting ridiculous.

 

Huh? Doesn't a bidding war imply that MULTIPLE offers are going OVER the asking price?

<Shaking my head>

 

Am I understanding this correctly - the selling agent flat out lied to you? How can you have a bidding war under asking price?

He must be watching too many Million Dollar Listing reality episodes.

 

No, he wasn't lying. Multi Unit / Commercial buildings don't usually sell in a bidding war / multiple offer. I thought this guy was crazy, and it did not end up working for him in the end.

I guess the agent was trying to get tons of offers on that building, and someone would offer far beyond the original price.. but wasn't successful. I was just commenting on how ballsy and foolish some agents are in this market.

But then again, there are fools out there who will over pay .

 

ITs possible.


The agent might have listed the property intentionally low. Say the seller wants 1m. They list at 900k to get excitement 'cause the agent sucks. They can get a ton of offers but its still up to the seller to accept one. IF people are offer $910, $920, $930, or even $999, its still a bidding war, and still below what the seller has in mind...

Conditions too, can kibosh an offer. An offer for full asking, without conditions in my eyes, is better than one for 100k more where its dependent on sale of their house, financing, home inspection, and other nonsense people's agent use to make them look like they can negotiate.

 

+1

In some cases, the agents will purposely list a property for below value, and then set a final target date for offers. Buyers (or agents) will then make an offer as they wish on that date. It could be higher, or lower than the listed price. In boom markets (like Toronto) the offers will need to be higher in order to buy it (or win the bid). And whoever has the best offer (usually highest with least conditions) will "win it". Its basically like shooting darts at a dartboard, and not the best practice in my opinion. But its great $$ results for the seller...

Typically this only works with residential properties that are in high demand and low supply. But usually not in commercial / industdrial properties where there are many listings and very high list prices in the millions of dollars.

But then again, anything is possible in the TO / Van market ... supply and demand rule.

 

Point taken.

I spoke with my accounts person today and asked her how business was. She mentioned the bank has been tightening lending for some time now, especially on foreign investors, but the prices continue to rise (Toronto). She is of the opinion that it will not cool down anytime soon (detached/semi-detached).

 

As long as our dollar stays low, housing prices will increase due to off shore buyers looking to park/launder money. Inventory is at an all time low. House just down the road from us sold in 2 days, open house canceled. 60k over asking. Crazy. My brother is cashing in large.

 

Yes, this is part of the problem. Inventory is very low.

I am checking realtor.ca every day... just browsing at new listings. Its shocking how little few houses are for sale. (existing houses, not condos or new builds).

With the thousands of people moving to GTA every year, there are only a handful of existing houses available.

Nevermind in Toronto city, especially in nice-middle class neighbourhoods next to transit, there is absolutely nothing available. People who have purchased houses in the last 15 years seem to be staying put and not moving. Only option of getting into a neighbourhood is buying a piece of junk and building your own house, or buy a condo.

 

Inventory is very low. We also have a problem that the banks need people to see their houses are going up in value or they may stop paying their overinflated mortgage. The higher end in Vancouver and the lower mainland is not moving fast. Over $3million outside of Van is at least over a year to sell. I like to pick at least 5 houses or more watch them and the longer on the market the better. Then I'll make an offer after a year.

 

Nice! Those who had investment/rental properties are making money hand over fist.

I'm not too surprised though. I mean, let's say you bought for $4-500K 15 years ago, and now it's worth a million. Well, so is everything else in the area so what can you do but stay put or get out of town. If it was a second property then you're golden.

You guys are right; the inventory is low. Low interest rates make buying a more sense than renting. Up up and away we go, but for how long?

FF 10 years from now when the current Uni students are looking to buy their first home. Where do they go? New Market? Niagara Falls? Kingston? :s

 

Yup.. you just answered your own questions!

Inventory is shockingly low.... I might have 50 or so houses in my pocket neighbourhood, and be rare if I see 1 or 2 come for sale every year on average. Keep in mind that I live 5 minute walk to the Bloor Subway, which is a "golden goose" location. Very tough buy/afford near subway transit, let alone find a listing available at all. Of course a lot of people want to live near transit, so there is always a constant demand for such, and very low supply.

Real Estate is like a hot air balloon... If you want it to rise, add flame (low interest rate!) If you want it to drop, less flame. (higher rates!)

 

Started to look for a house for my daughter in Markham. Boy am I out of reality on prices. I thought 600,000 would buy a nice lot with an old bungalow, knock it down and I would build her (and her soon to be finance) their dream home. Can't touch basic 50 foot lots in nicer treed areas for under $1 million. Looks like will have to visit the bank after all. And the prices definitely will not be coming down.

 

House just sold near dupont and landsdowne. More of a shack on a tiny slice of land, 900sqft old semi asking 999k sold 1.6m

Prices are crazy

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That sounds out of the ordinary (even for this market). Link to property?

 

Nothing special about it. I'll find it later today

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Our daughter listed her house on Wednesday.

By Friday afternoon, there were over 100 viewings booked outside of the published Sunday Open House, and several bully offers. The "auction" is this Wednesday.

Story same as someone described earlier. Lower listed "For Sale" with expected bids 10% higher.

 

So in the end, they had 171 viewings, an additional 150 groups through the weekend open houses, entertained 18 bidders, sold for 20% over ask and 33% more than they paid three years ago. She's happy. Global TV did a story on it.

 

Nice!


Up up and away!

"The average Greater Toronto Area selling price in March was $688,181, 12.1 per cent higher than the same period last year, according to the Toronto Real Estate Board."

https://www.thestar.com/business/2016/04/23/spring-housing-market-a-whole-other-level-of-insanity.html