Is this a true spring market, what the heck is going on ….??
In a nutshell – Home prices are up and continue to increase because our inventory is down meaning there are not enough homes for sale and too many buyers. This is a classic example of supply and demand – due to the limited supply of inventory buyers are willing to pay more.
A few years ago we had a balanced market – sellers would list their home and start the process of buying a new one. Homes would take some time to sell and buyers had a few to choose from. Now sellers are waiting until they have found their new home, then listing their home for sale and typically holding off looking at offers in case more than one buyer is interested. This is a true seller's market.
We are also noticing buyers coming from different areas – mainly Toronto. These homeowners are receiving more for their Toronto homes and finding the west GTA allows them more choices and value for their money. This makes it difficult for local residents to compete with the price they will pay as we see many homes sell with multiple offers over list price.
So to answer your question - my neighbour's house just sold for “xx”, can I do the same? My answer will most likely be yes, but my next question will be Where will you go? If you want to stay in the area then you need to prepare yourself for the buying battle.
When will it end? Is this a bubble? There are many theories on this and no one has a definitive answer. My advice is and always will be to have a professional opinion with your own individual situation to determine what is best for you. I am always available with any information you require, feel free to reach out any time.