Lost out on another offer last week. This time it was a freehold townhouse that my clients competed with five other home buyers for. This is only about money. My clients went in 8% over the asking price and that was 8% over the price of a unit that sold about six weeks ago four doors down – same house, essentially.
They lost out by $20,000.
In the news, people were lining up last Wednesday for builder houses on small lots that went on sale on Saturday, waiting three days in the cold and the rain for a chance to buy a house from a builder.
The other day, a Realtor knocked on my door. He was out looking for listings, knocking on doors looking for someone, anyone who wanted to sell their home.
What to expect
So what’s the word? Is this going to continue into next year? Is this going to get better? Worse?
All three, I predict. It will get better eventually. The laws of economics and the laws of nature always move towards equilibrium.
Nature abhors a vacuum.
Supply meets demand.
So now we are at the end of October. We will soon be entering the slowest time for real estate. The lowest time for new listings. No one thinks about putting their house on the market just before Christmas. So listings will stay low, low until the late winter or early spring.
But the buyer pool is lower this time of year too, traditionally. Spring somehow has become our default home buying time. During the colder months buyers stay in.
I do think though that the new stress test for mortgages may lead more Torontonians here, but maybe not as many as you think. According tot the story about people lining up to buy homes in Vista Hills last week, only about 25% were estimated to be from outside the region. On the other hand, there are distant rumblings that interest rates will start to rise. If that happens demand may be impacted.