The local real estate market shows no signs of slowing down
If you are considering selling your home in New Tecumseth, you will not run out of buyers as the local real estate market remains hot and the great migration from major urban centers continues to put pressure on the local housing situation.
Interested buyers combined with low stocks have pushed prices to record highs in the region and there is no indication that this is slowing down.
While other neighboring regions have peaked when it comes to house prices, New Tecumseth still experiences a price increase with multiple offers when a home is put on the market.
Cities like neighboring Orangeville have already reached a point where house prices are comparable to other centers closer to the GTA and prices have reached a plateau where it is simply not possible to go higher.
New Tecumseth’s low inventory means it is a sellers market and local properties always receive multiple bids and bidding wars when the “for sale” sign is placed on the front lawn.
“We had a huge price spike in the spring and they still are,” explained local REMAX realtor Kyle Butcher. “We still see multiple offers on many ads, many of which are above asking price – that’s not true for 100% of the ads, but it’s the majority. ”
There are several reasons why the real estate market is so hot in the northern GTA. Many first-time buyers simply cannot afford the prices in the GTA market and have started looking north to less populated areas in hopes of finding a home.
The pandemic was also a major influence as many people started working from home and decided to move to a more rural area and avoid travel.
“The great migration out of the GTA – and this has been going on since the start of the local real estate market shows no signs of slowing down from COVID – started with many buyers selling at a ridiculous price there and coming that way and getting more for their money, ”Mr. Butcher said. “It’s rare now to get local buyers for local listings. If we get a list and 20 hits, I would say 90% of them are out of town agents bringing in out of town buyers.
Things have slowed down a bit, but there are still multiple offers when a good is released. While the market normally slows down during winter, spring should see further price increases.
“The bidding wars are not as drastic as they used to be,” Mr. Butcher said. “It used to be that you could get six to 12 offers on a house, where now you only see three or four, but the majority are still selling for too much to ask. If nothing changes in the dynamics of the market, if supply and demand remain as they are, then prices will continue to rise. If the inventory increases, it should stabilize.
The surge in house prices over the past two years has put a lot of pressure on new home buyers looking to enter the market with their first home.
New federal regulations called “stress tests” that were put in place in June determine whether new buyers can truly afford the home they want to bid on. On top of that, many buyers face a challenge when offering a home, only to find that the lender will only provide the funds for the appraised value of the property – not the price offered. This leaves buyers scrambling to find the additional cash funds to complete the deal.
This caused a lot of deals to fail at the last minute.
Many factors will continue to determine the real estate market over the next couple of years, but for now, the local market and the surrounding area is still strong as more people leave the GTA in search of affordable housing. goods.