We’ve all heard how crazy the market has become. Multiple offers, bully offers and selling way over asking is the norm. Just like a shark feeding frenzy, there’s a buyer frenzy happening and vendors are cashing in.
Take for example the vendor for this home that sold in Feb. It was listed on Jan 26 for $689k and sold in 7 days for…well you guessed it…way over asking…$842,500 to be exact. That’s 122% of asking. Happy seller right? Let’s keep looking at this. The closing of the home was set for March 3, 2017. Guess what happened next?
Low and behold, the property was listed for sale by the new owner on Mar 4, 2017. The day after it originally closed. No renovations, nothing changed…other than being photographed from the opposite angle. Risky move? You bet. Would you do this? Let’s see how it played out.
This time the home was listed for $799k and sold in 5 days for…are you sitting down? A whopping $1.066m. That’s $223k more than seller #1 in a month. In other words, that specific home increased in value by 26% in ONE MONTH. I can’t imagine how seller #1 feels…but this was all legal and if the opportunity is there for sellers #2, why shouldn’t they take it?
We’ve been in a seller’s market since 2009. The trend of rising home prices and bidding wars has become the new normal. But we’ve definitely noticed an increase in the slope of the graph line over the past two months, we’ve reached a new higher level…a peak within a peak if you will.
There is a buyer frenzy going on just like a shark feeding frenzy. And here in Vaughan, it has never been seen before.
Buyers are lining up to take advantage of record low mortgage rates. Buyers are escaping the more expensive Toronto and coming to Vaughan for better value. If you’re thinking of selling your home, conditions might not get any better. This is an excellent time to sell if you’re considering downsizing, retiring or moving out of the GTA. If you’re curious about how much your home is worth, find out here.
This post was written by David Ursino