09 November 2021 ~ 0 Comments

The trend towards dwindling supply continues

Octobers numbers are in and the trend of lower supply is leading the story once again.

New listings across the GTA were down 34.1% from last year. Active listings saw an even larger drop with 55.2% less property for sale.

If you are tired of hearing about how low supply is the major cause for escalating house prices, I’m with you. Yes, interest rates also contribute in part but supply is a much bigger issue. 

The average price now sits at $1,155,345 which is an increase of 19.3%. In real money that’s $186,810 over October 2020 prices!

But don’t worry folks, your Federal government has a plan. We will allow you (well you being first time buyers) to save $40,000 TAX FREE to be used towards your purchase. Problem solved! 

If you can’t tell that I’m a tad frustrated, well I am, but it’s something that I’m used to and so far, I’ve managed through it quite well. I work with an equal amount of Buyers as I do Sellers and it’s certainly difficult to go look at houses and condos, find one that you love enough to invest the majority of your savings into, place an offer and then get beat out, time and time again. I think over the past 3 months my buyers are averaging putting in 3 offers before actually successfully locking down their next home. 

The stress from doing so wains on everyone involved, the buyer themselves, the agent, the lawyer (if they have involvement), the mortgage broker or lender, the appraiser, the family and friends of the buyer, the therapist of the real estate agent.  The list can be quite long. 

But mainly it’s most felt between the Buyer and their agent, as they spend the bulk of the time together in real estate transactions.

It’s a grind I wouldn’t wish on many, but we all have certain skillsets that help us carry on. Let me share with you a dream that I’ve had on more than one occasion.  I wake up and go to work, showing homes to buyers and they are plentiful in supply. Maybe even 4 or 5 on every street! We go have a look, the neighbours are out frolicking in their yards, all smiles and happy as can be. We never bump into another buyer and their agent viewing the home, and we actually can go back for a second look if we like. Even a few days later. 

Then I awake. Realize it’s just a dream. And try very hard to fall back asleep and find that happy place. Which from what I remember was 1998. 🙂

Okay back to a more serious note. It’s no longer if our housing needs are in need of change, it’s a strong yes, change is needed. Until then, my guess is that nothing much will change and our tight market will continue. Until it doesn’t. 

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