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Real Estate market – Is this the perfect storm?

February 28, 2010

If you’re thinking of selling your home or condo in Oakville, Mississauga or the GTA, don’t wait!

Simple enough? No? How about “Sell N-O-W” ūüôā

Ok well here’s why:

Recent data compiled by RE/Max in their 2010 Market Trends Report confirms what I’ve been saying for months now: The current demand for real estate homes and condos in Oakville, Mississauga and the Greater Toronto Area is far outweighing the supply of available properties for sale. ¬†Active listings are still at low levels – down 41% in Toronto and surrounding areas.

When you combine the shortage of available listings with the drastic increase in sales of homes and condos, stir in low interest rates and upcoming changes to CMHC backed mortgages with a side of HST (harmonized sales tax) you get the perfect storm of Real Estate. The lack of supply of available homes and condos is once again bringing more bidding wars and causing real estate prices to rise. ¬†Buyers simply don’t have enough selection to choose from and Sellers are benefiting.

Bottom line: As long as the demand continues, unless more homes come available to the market, prices will continue to rise…

With current real estate market conditions being what they are, I would encourage you to look closely at your situation if you’re thinking of selling your home or condo this year. ¬†My advice is to list now, before the rush of the spring market – I have buyers looking for homes and condos now in Oakville and Mississauga. ¬†As always, I’ve been urging patience, but the reality is that there are buyers who are buying now and taking advantage of low interest rates.

Feel free to contact me to confidentially discuss your personal real estate situation.

Ryan Chelak is a real estate broker serving Oakville, Mississauga & the GTA, as well as a longtime Oakville resident. Subscribe to my blog to keep up to date on local news, information, events and of course everything you want to know about Oakville & Mississauga real estate.


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4 Comments leave one →
  1. March 1, 2010 8:17 am

    Hi Ryan:
    I couldn’t agree with you more. Oakville has a huge shortage of homes and my buyers are getting impatient. People seem to be afraid of listing.

    • March 1, 2010 8:30 am

      Hi Rosanna,
      Thanks for visiting and your comment. I think it’s a catch 22 type of situation – there definitely seems to be some hesitancy with homeowners that might otherwise have been looking to ‘move-up’ to a larger home. Certainly some of my clients see it as a great time to sell, but then say “now what?” What am I going to buy and do I want to pay that? Concern revolves around price, equity and what will happen to values.

      Thanks,
      Ryan

  2. longpre1 permalink
    March 1, 2010 12:15 pm

    On the flip side to sell now, I sit back and wonder, “Buy now?”

    As a buyer if and when the houses start flooding the market will I save money by waiting?

    Interest rates will go up, the HST will kick in so waiting would see a buyer losing money on that end. But if I can get. $400,000 home for $400,000 rather than $450,000 am I better off waiting for the market to flip to a buyers market?

    Dustin

    • March 2, 2010 5:28 pm

      Hi Dustin,

      Great comment! Here’s my short version answer:

      The market Oakville and surrounding areas for homes around $400k is really tight right now. Quality listings are selling fast and often at or over asking. Ultimately, there’s no clear answer to your question. It’s a matter of weighing options. There will be costs involved in moving twice, rent paid, time and inconvenience compared to money saved by locking in under available interest rates, saving HST. There can be good value found at any given time it’s a matter of timing – unfortunately current demand makes this more difficult. Since we don’t know how things will play out yet, you may find that you’ve spent your ‘savings’ waiting for the market to turn. Ok, maybe not so short an answer…;)

      I’ll email you some current comparables and recently solds to help…

      Ryan

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