admin | Nov. 7, 2016
It’s October KW! – no, what? wait! It’s November, this is the OCTOBER REPORT
On October 17th we saw new mortgage rules come into play. Borrowers now have to be approved based on a higher standard. The thinking is, “hey, this is gonna slow things dooowwwwn”. For KW this is probably more of a boost. Those looking for homes at a higher price point may now have to look at homes priced a little lower. Some buyers that were just able to get approval may have been bumped out of the market and now have to look to rent or continue to rent. The first thought is that this is a slow down. But, not really. These rules affect Canada. Which means that Buyers in Toronto, Brampton, Mississauga, Burlington, Oakville, Milton, etc that have been affected more by these new rules than KW residents are now looking to buy in KW. Also, Renters need Landlords. A steady or increasing tenant base means investors are more confident buying properties to rent out. So, how many Buyers have been knocked out of the market versus how many buyers are looking here from other markets and what is the impact of increased investor activity in the area? I’m confident that the scales are tipped in our favour!
5,818 residential homes have sold year to date versus 4,920 last year at this time. That represents an 18.3% increase. Active MLS listings are down 53.9% with only 729 properties active in KW.
Also, sales over $500,000 have doubled versus the same month last year. The average price of all residential homes sold in KW in October was $408,067 – a 12.7% increase over last October.
Detached home average price in October: $478,685 (up 14.3%)
Apartment style condo average price in October: $225,221 (up 5.6%)
Townhouse average price in October: $307,294 (up 17.6%)
Semi detached average price in October: $329,966 (up 23.9%)
Everything is up. For Sellers this is a great time to sell. There are home owners that bought a year ago and are selling now and raking in huge profits in a very short period…seems easy, right? Well, I see agents throwing up signs and then bragging on Facebook how they sold a house in a day. Wow! Great stuff. But, what if the house was able to get MORE money? What if the agent advised their Seller to take the first full price bully offer that came in? What if it went to a bidding war and they accepted the highest offer? Sounds okay I guess. But an agent has a job. It is outlined in a document every Seller has to sign when listing. It say that “an agent must strive for the benefit of their client”. Strive. This means we need to work to get every dollar we can. An experienced agent that understand how to get every dime is the agent you want. We are those agents. We strive to push the first offer for more money or push them into multiple offers. We strive to get those Buyer agents to go back to their clients for more money even after they are the highest bidder. We strive for you!
What about Buyers? Well, it is frustrating, exciting, fast and nerve-racking. We are experienced, so our Buyers can rely on our advice. We can see the pros and the cons of a home and provide insight to help our buyers make decisions on the spot. We understand construction quality, property values, neighbourhood characteristics, and most importantly we are successful at matching a new property with the needs and wants of our clients – When you are happy, we are happy!
