We are finally getting the nice, warm start to the summer that we have all been waiting for - one that makes showing properties that much more pleasant.
What can we expect from the real-estate market this month? It is pretty calm in most areas of the GTA, though you may see unusually high or unusually low sales in specific places. There are still sellers who predict a big price spike now or in the fall, but we don't see it.
Some investors who purchased at the peak of last year changed their mind about building and trying to unload inventory. There are quite a few vacant houses that were purchased last year that are now for sale at a slightly discounted price and with little hope to be sold.
At the same time, you may see houses listed for a price lower than the actual worth. Consider this: you book the showing, your client likes the house, you make an offer, and the listing agent calls you back saying the seller is expecting more money than the original asking price. This month I had 2 situations exactly like this. It is usually the situation that the house was purchased a year ago, renovated, was on the market for a much higher price and didn’t get sold. The seller begins struggling and lowers the price below what he is willing to accept, and waits for buyers that know that. All these people will be wiped out from the market shortly and will be forced to sell at the market price.
Last year I had a property for sale in Woodbridge. It was during peak time and was sold for 1,150,000. It was a good size: a 4 bedroom detached house with 2 garages, in average condition. The person who bought it decided to renovate it and sell it back. Sure enough, this year it was listed for almost 1,400,000. A totally renovated, beautiful house, and after 150 days on the market, it was sold for 1,285,000. The seller got 135,000 more than a year ago, but after deduction for renovations, mortgage, taxes, and the real estate fee, he likely ended up losing money.
Another important thing to understand is we are experiencing a deficit of inventory in the GTA. There are two reasons for this: it is already June, and it is normal to have less activities during this time. The second reason is that prices are not that high, and there are a good number of potential sellers who have decided to wait until September, or even next spring, with the hope of catching a better deal.
The MLS® Home Price Index (HPI) Composite Benchmark was down by 5.4 per cent year-overyear. The average selling price for all home types combined was down by 6.6 per cent to $805,320. On a seasonally adjusted basis, the average selling price was up by 1.1 per cent compared to April 2018.
Not familiar with the ups and downs of the market? Give me a call at your earliest convenience. I can help you with condos for sale in Mississauga, as well as houses for sale in Mississauga, Etobicoke and Oakville.