If your romance is as hot as the Real Estate market is right now… Wow! For Buyers trying to get into the market or those wanting to upgrade though, the lack of and quality of inventory to choose from is only becoming less appealing and harder to swallow. There are a lot of contributing factors to consider. With the higher prices stemming from Toronto our market area has been more appealing for the price alone. A giant bullseye is on the Barrie and area market for investment opportunity too... If you sold for a million plus in Toronto and you came up here why not buy two properties while you still can? I haven’t researched how many Buyers from Toronto are actually doing this, but I do know a couple people personally who have and I don’t think that is much of a stretch for the imagination. When one Buyer comes with the power of two it perpetuates the exponential problem of demand in the market. Living in the local area we have to ask where else are all of these powerful Buyers coming from who are paying $100K over asking in many cases and driving these prices?
Another reason for the increased demand, I believe, is that the prices are acting as a double-edged sword, where current homeowners who would consider upgrading from their first home into something closer to their dream home are seeing the practicality of that fade. And since they are worried if they sell first that they may not find anything, they are staying put which is indirectly limiting availability.
According to many news articles the only solution is more choice, more supply to ease the demand. We need approval on more building sites to help ease the pressure from a back log of Buyers and Investors. In one news article they indicated some industry experts are saying one of the causes for the higher prices in Toronto is because of the giant, environmentally protected ‘Greenbelt.’ They say it is a barrier for new development around the city, so those interior developments are only more valuable because there is nowhere else to grow. In our case, I think that is a strong reason why our area has such a target- if you look at a map of the Greenbelt, Simcoe is the natural place to come from the city.
I think this market is currently even hotter than last year in terms of bidding wars and prices. So If you got into the market last year or the year before pat yourself on the back! If you are looking to sell high and buy low you are more than likely going to need to travel out of the area in order to do it. Otherwise, if you are staying put, remember to treat your current house like the one you love, buy her some pretty things so that she can look better than ever before- take care of her, and she will take care of you!
Remember that your good word helps me grow. If you hear of anyone talking about Buying or Selling please get in touch with me or pass my info along!
Much love to you this Valentine’s too!