If you’ve been out testing the Real Estate Market in and around our regional area, you know that things are crazy out there and have been for some time now. There’s not much selection available and what does become For Sale seems to get multiple “bids” being offered up by people who are desperate to find a place and have been searching for some time. This has put upward pressure on the selling prices and people are actually paying over the list price to secure that home they so badly want. Many forgoing home inspections or even worrying at all if the house has any major issues they are about to buy at a higher than normal price..
It’s the old supply and demand issue, and a lot of the pressure on local housing inventory is coming from people cashing in on wildly high prices in the GTA and then moving here for sometimes half the price and being able to bank the rest of their windfall.
How long will it last? Is it a bubble? There has been a lot of speculation as to how long these conditions will last. A lot depends on the economy, interest rates or various world events that might change the economic climate. Right at the moment, it doesn’t look like any of those things are about to occur in the short term, so if you aren’t in a position to wait the situation out (which may take years), there’s not anyone can do to change the current situation except for moving to a community that isn’t being affected by the Toronto housing market, which is now spreading a long way out from the City.