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COVID and the housing market
- Thread starter mimico_polak
- Start date
List price means almost nothing. Start talking about over/under vs recent comp and we have something to talk about. Many houses around me keep jumping up and down hundreds of thousands on list price. It's obvious seller has a number in mind and they are playing marketing games to try to get a buyer.
Most agents have no respect for the product or the process. They will take a listing at a stupid price because it’s mega payday , or the price gets hammered down and it’s still payday.
The interesting things to watch going forward , if your not caught in it, will be the resells that are going to be underwater . We haven’t seen that here in a long time .
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The interesting things to watch going forward , if your not caught in it, will be the resells that are going to be underwater . We haven’t seen that here in a long time .
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Mad Mike
Well-known member
Yup its happening. A couple of places I bid on and lost in April failed to close.
2 Agents called me this weekend with great news that I can now buy with an offer (no more bidding). Told me my original offers would take the places. For fun I'm going in again... lowball... Doing my part to support a downward trend.
I've mentioned the comment before but an auctioneer replied to a disgruntled bidder "It's worth what I get for it."
Speculators putting in no added value get no sympathy from me. Fix up a place and make it someone's next home is fair game.
Mad Mike
Well-known member
What I like is we seem to be getting out of the auction-type sale. I think realtors use this in hot markets because it draws in dumb money, creates a bidding frenzy that overshoots value, and sells property quickly. The realtor doesn't really care if it sells for a million or !!! $200K Over asking !!! if he can blow the property out with the least effort and expense. I'm sure most realtors would be happy with $50K commission in 3 days vs $60K and a bunch of work and marketing investment over 60 days.
When I noticed most was the typical discount on fixer-uppers evaporated as speculators bet on appreciation over value add. I think that might have slowed, maybe ended as I'm seeing the fixer-upper listings languishing and being discounted again.
The small house and fixer-upper side is something to watch. Higher rates and future price uncertainty means flippers, fixers, developers, speculators face greater risk and will sit out of the market until they see a direction. Many just do not understand how this crowd is cranking prices at this end of the detached market. This is exactly how we got our house in late 2008....seller had a low price (expected bidding wars), needed to sell and we were the only people to show up! Couple of years either way and the price would be close to double what we paid.
Location, Location, Timing.
Good reminder @backmarkerducati! I need to call up my broker to see what's possible with the current market 'adjustments' and how I can take advantage of it...or if at all and hold everything close to the chest.
People keep telling me there won't be a crash or craziness like the US due to how mortgages are done in Canada.
Any truth?
I would not expect a crash but that does not mean it will not go down.
I’m more curious what’s going to happen to cost of materials and supplies.
Still want to do our Reno…..but not at these ridiculous prices.
So glad we didn’t hire the PM my sis had for her pool…comedy of errors and ********.
Ya I brought that up and they bring up how Canada has the fewest homes in all of the G7 + all the immigrannts + being one of the largest growing population.
Idk who to believe anymore
Are those people Reddit?
I don’t see a crash coming, but the correction has started . The 3 mil houses are 2.5 again ( where they should have been) . Do we see any bottoms fall out when interest gets to 6.5 or 7? Some people that should not have been in the game will need out, but I suspect that gap gets filled by people that can afford to be in . I don’t see any 500k townhomes coming back .
And this speculation is worth what your paying me for it ……
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And this speculation is worth what your paying me for it ……
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No. I have a few friends who have flipped houses, mortgage brokers and real estate agents
Thing is a lot of people that couldn't afford (let's say) 1M at 2%, still won't be able to afford 800-900k at 5%.
Mad Mike
Well-known member
Prices increased across Ontario like a Tsunami wave with the GTA as the epicenter, the further away the later your prices surge. When things cool off, it happens in reverse -- outlying areas drop first, the GTA last. It's happening -- Brampton, Oakville, Hammer, Barrie, Shawa, Newmarket ... all down double digits from the peak. The GTA is down too, but close in areas that are built out Pickering, Markham should behave in step with Toronto.
| Zolo Stats | Peak Price | Now Price | Price Change | % Change | |||
| Location | Spring '22 | Jul 2022 | from Peak | from Peak | 1 mo | 3 mo | Year |
| Barrie | $979 | $792 | -$187 | -19.1% | -6.4% | -13.6% | 5.8% |
| Brampton | $1,369 | $1,066 | -$303 | -22.1% | -5.8% | -18.7% | 5.3% |
| Hamilton | $1,058 | $888 | -$170 | -16.1% | -4.0% | -12.6% | 7.6% |
| Markham | $1,501 | $1,344 | -$157 | -10.5% | -0.7% | -4.1% | 12.4% |
| Milton | $1,375 | $1,079 | -$296 | -21.5% | -11.2% | -14.5% | 2.5% |
| Newmarket | $1,456 | $1,118 | -$338 | -23.2% | -7.3% | -15.8% | 2.0% |
| Oakville | $1,815 | $1,400 | -$415 | -22.9% | -2.1% | -23.6% | -5.7% |
| Oshawa | $1,066 | $819 | -$247 | -23.2% | -1.7% | -17.2% | 2.4% |
| Pickering | $1,342 | $1,156 | -$186 | -13.9% | 5.2% | -2.7% | 12.4% |
| Richmond Hill | $1,586 | $1,360 | -$226 | -14.2% | -5.7% | -14.5% | 5.5% |
| Toronto | $1,252 | $1,157 | -$95 | -7.6% | -5.9% | -4.4% | 7.2% |
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Thanks for that Mike, always good to see what's what from people in the business.
As always...I'd be super interested in doing what you do...but I have no clue about Timmins market, or able to take that much time off from my work.
I'm going to keep my eyes open though because if the market starts cratering like I expect in the outskirts...maybe there's something out there for me also.
Mad Mike
Well-known member
2x4 down from $10 to <$6 at Home Depot.
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