Saturday, May 21, 2016

It's the Wild Wild West Out There

I have to say the market is going full steam ahead.   Was in multiples last night again for a client.  Once again we did not improve high enough to win BUT at some point, integrity has to prevail.   How much is too much ???   I seems to me the prices are moving way too high, too fast.

People say Realtors are making a killing this year.  Well as a partner in a
brokerage with over 100 agents, I can tell you firsthand, they are working ten times harder to put one deal together.   The market is lacking inventory and the buyers are at the mercy of the seller.  Agents are showing and writing offers that go no where and are back at it the next day trying again.    

In the heat of the bidding war, when do you say, "Ok, I think we need to walk".  I think I have said it several times this month... LOL... because I just feel like the home does not have that value attached to it.  If I wouldn't feel comfortable paying that for the house or selling it to my kids for that price, I certainly cannot advise my buyer to pay that.

At some point, you have to say, "It's your call" to them and let them decide how much is too much.  

Has Durham Region been undervalued for too long and we are just paying catch up to York Region and GTA?   Are we now just being seen as the closest pocket to Toronto that is affordable?   I would like to think so because nothing else seems to justify this huge spike in prices.

In 2006 a detached home in Pickering the average price was $344 approx.  In 2016 the average price for a detached home in Pickering is close to $700K... so you have a 100% increase in value in 10 years.   Prices have doubled for conversation sake.  

If only we knew then what we know now !  :)   So do you think in 10 more years, the average house in Pickering will be 1.4M.... Hey it doesn't sound so crazy anymore !

Will the market slow down?   I hope it balances out.  A market like this is a slippery slope.  When it is balanced, people can have home inspections, negotiate sale prices etc.   Right now, it is the Wild West out there.  Seems like common sense is out the window and it is just "pick a number" ...

Agents need maybe to list higher to stop all the multiple offers.  That might put the brakes to this... Who knows... But at least I know I can sleep at night because I am not letting my clients pay some of these ridiculous prices.....

Happy House Hunting Everyone..... May the best offer win !  
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