Home Prices Gone Insane in GTA
What on earth is happening with our real estate market?
If you woke up this morning thinking, “Today would be a good day to buy a home.”, you may be in for a massive shock – the real estate market and home prices have gone insane! Good luck finding one listing that does not have “All offers, if any will be reviewed on “date”‘, inserted in the remarks. Good luck finding one nicer looking property that does not sell for 20-25% ABOVE asking price! Every single part of Greater Toronto area is experiencing exponential rise in home prices, from Ajax to Hamilton and beyond. In fact you can drive up to Caledonia and find yourself in a bidding war with properties selling at nearly Mississauga prices.
The current reality and real estate prices!
I have recently bought for my clients, a property in Hamilton, at a cheap $218,000. Single detached home, needed some work but overall in good shape. Steal of a deal at this price, comparing what sold on the same street in last 2 months. But get this, the previous owner bought it in 2011 for roughly $50,000!!!
Last night I sold an investment property in Hamilton for $1.2 million which the seller bought for $75,000, twenty years ago. Somebody crunch those numbers!
Does it make sense to pay so much for a home?
Is this insane or what? Well, probably not. Just as Ajax property prices shot up through the roof last year, Hamilton and Brampton and even Grimsby, are beginning to experience the gold rush of investors and immigrants looking for a bargain. I remember placing an offer in Ajax last march on a detached home that was valued at 400K, which was listed at 399K and with 11 offers sold for 460K! That is 15% over asking price, but not so bad if you work in Toronto and can’t afford $1,000,000 to buy a shed in downtown. Just jump on 401 and DVP and with a bit of rush hour, you’ll be at work within an hour and still with a half a million in your savings account.
How about placing an offer on an average 2700 square foot home in Joshua Creek in Oakville. Asking price $1,088,000. 18 offers. Sold for $1,350,000. (Location, location, location…)! Of course, it also helped that most of the buyers, (95% of the offers), were Asian immigrants/investors who find our prices to be no obstacle, when the alternative is the life they are trying to escape.
So if you don’t have a home to call your own, better get moving. If you find you can’t get a steal of a deal, give me a call! 647-892-5007