With the HST looming over our heads and the rising interest rates in the coming months there is going to be another factor that will slow our sellers market down. It happens every year around this time. More people listing of course. This is the month that most people like to list their property. The reason; good weather and more buyers. More people like to have garage sales, do their renovations and put their house up for sale. It happens every year. This year is no different only in that people who were possibly thinking about selling their house later on in the year might be swayed to sell now since almost every house is selling for asking price or over the asking price.
My advice to buyers is not to get caught up in the circus. If you have to move because you sold your house make sure you have plenty of time. This is a benefit because you don’t have to fall into a bidding war. You can wait for the deal you want. There are going to be plenty more listings on the market maybe too many. This is going to drive the price down a bit. There are going to be too many listings out there. The way buyers get trapped is that they are in a crisis because they waiting too long to start looking for houses. After they are in a situation where they have to pay a significant amount more for the house they wanted. Then they think that maybe they shouldn’t have sold their house in the first place. That is not a great situation. Work with your agent and if there is something you like on a street and it is receiving multiple bids ask your agent to do some door knocking or phone calls to the neighborhood to see if anybody else is thinking of selling on the street. Maybe your agent can work with people who are on the fence and then because there are no other offers you can come to a price that might be lower than the house down the street.
Look for houses that have been on the market for a while. Maybe the sellers are pricing the house too high and are willing to come down. Look for houses that have steadily come down in price. These people are motivated to sell.
If you would like to start your search please call me! 905-277-1805
Have you ever hired a Real Estate Agent that does not answer the phone or call you back?
Here’s the scenario, you are looking for a house, you drive by a for sale sign and want to know how much the house is and details about the house. You call your agent who is very busy looking for houses for you. He or she does not answer. You get frustrated. You then say in your head, “Its okay they are busy working for me right now”. You then call back and leave a message. Day 2. You drive by another house for sale. You call your agent and get his or her answering service. You leave a message and expect a return phone call right away. You left a message with the answering service this is great technology. You call them to call the agent the agent then calls you back. Its a great service. You get nothing back. Finally at 9pm you get a call and your agent tells you both houses are sold conditionally last night. You get upset and go straight to a new builder and try to ask for a mutual release because you are unhappy with your service. The agent finally lets you out of your contract and you tell everybody about your bad service and how you will never use a real estate agents again.
This scenario came from a client who I am looking for a house for. While I was sitting with the client discussing what the client is looking for the first thing that came out of their mouths were do you answer the phone and if you don’t how long to at least get back to us. The reason for this question which I totally understand is that most houses are selling so fast that if there is a huge delay then the house will get a registered offer or be sold by the time you even have a chance to make an appointment.
My answer was that I don’t have an answering service and my phone is on 24hrs a day. If I cannot answer I usually text message back a response and that as soon as I’m out of my meeting or whatever work or open house I am doing I will respond.
That is customer service. 905-277-1805 call me today. I will answer!
In my own experience in the last few weeks I have noticed while looking for a few buyers of mine that houses are selling faster than they can be listed properly. What has been happening to me is that as fast as houses are on the market they are already selling in a multiple offer situation. The people who know they are going to move know that the interest rates are going up. This is a huge factor. I have been saying as well as everybody else that the market will slow down soon. Interest rates combined with more houses being listed will give the buyers out there more choice and it will drive the prices down a bit.
With all the houses going off the market so fast there are also a bunch of houses I noticed on my street and in my area that have been sitting there and there is no movement. So I looked into the houses and noticed that they are way overpriced. So I was walking and handing out some of my market watch report on my street and I spoke to one of the owners of these overpriced houses. I said how is it going, have you had any offers. He said we have had a few but they are very low. I replied how low. He gave me the price and I told him that those prices are not unreasonable considering the offers are a lot higher than the comparables.
The moral of the story is that just because we have this crazy market right now, it doesn’t mean that people are going to pay 40% more for a house right away. It possibly could get there during negotiations through multiple offers but that is another situation. Anyway happy hunting here is a report from TREB for March. If have any questions please email or phone me.
Record First Quarter Sales
April 6, 2010 — Greater Toronto REALTORS® reported 10,430 sales through the Multiple Listing Service® (MLS®) in March, pushing total first quarter 2010 sales to 22,418 – the best result on record under the current Toronto Real Estate Board (TREB) boundaries. The average price for March transactions was $434,696. The average price for the first quarter was $427,948.
“The strong rebound in the existing home market was one of the initial drivers of economic recovery,” said TREB President Tom Lebour. “While we don’t expect to see the same rates growth moving forward, GTA households will remain confident in ownership housing as a quality long-term investment, especially as economic recovery expands across all industries.”
The annual rate of growth for new listings continued to accelerate in March. The number of new listings grew by 42 per cent compared to March of 2009.
“The average home price in the GTA will continue to grow this year, but the pace will slow as we move through the spring,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “As growth in new listings starts to outstrip growth in sales, buyers will experience more choice, resulting in more sustainable single digit rates of average price growth.”
In March, the median price was $370,000, from the $317,500 recorded during March of 2009.